Ann: Financial Report for the Year Ended 30 June 2023, page-47

OK, so your earlier statement that BYRON had no hedges in place in 2022/23 was incorrect.

It is also important to note that most of their 2022/23 hedges were at $52.70. That is a low price (with hindsight).

They have (only) hedged 475 bopd and not the 675 that you claimed for the next 23/24 months. No idea were you got the 675 figure, perhaps an inadvertent typo?

Byron claim that this is/was approximately 30% of pre-G4/6 wells production.
Importantly, these hedges are at approximately $75 / bbl.
Now this may lead to a derivative loss, but at $75 it is an acceptable price to gain downside protection for existing production.

Byron will be generating significantly more cashflow/profit from hedged barrels this year compared to last year.
This is like producing additional barrels: which is another way to look at it as the profit margin / barrel is much higher, maybe even 2 times.

There are many ways to look at this, but a simple way is if we assume that the new wells (G4/6) produce at 475 bbls or more, and this is likely to be the case, this would mean that no existing production has been hedged. In addition, if g4/6 increase production, BYE also reduce per barrel fixed G&A and fixed SM58 costs.

As an example of what can go wrong, (hedging downside risk), Otto really suffered from hedging production to fund GC21 exploration/development - which produced virtually nothing, meaning that, what turned out to be deeply out-of-the-money (GC21) hedges, chewed up much of SM71 production profit. A complete disaster.