I've just spoken with the company regarding the hedge. The way...

I've just spoken with the company regarding the hedge. The way it was explained to me is that the hedge can be regarded as a gross hedge on gross production, as the Company has stated, or as a net hedge on net production. Byron has stated they have put in a 475 barrels of oil hedge on approximately a gross production of 1600 barrels of oil. It is equally accurate to express the hedge in terms of net barrels of oil on net production. The % hedge is the same therefore, if Byron average NRI is, for example 80%, then the hedge requirement is 380 net barrels against a net production of 1,280 barrels of oil.
I guess the Company thought it was simpler to express it in gross terms. This seems to me to be a better deal than having 475 barrels hedged against the net production of 1280 barrels of oil.