Ann: Strategic Review, page-30

Cmonaussie

I'm certainly no expert here but I'm aware you can't hedge too far ahead (maybe 6 months?) . I've now checked and found oil was 80/90 USD/barrel in Oct 2014. Production commenced November 17 and ramped up to peak production March 2. (Sales as at year end were $2.2M)

• So in October 2014 Tap should have hedged production at 80/90 USD?
• For what contract term and how many barrels?
• I am vaguely aware of the futures market but I assume Tap could have sold those Puts if there was a lengthy delay in start up.

I appreciate you comments. Thanks