Oh this is most amusing. I’ll humour you some more. So you think average realised sales price for Tap for 2016 will be USD30 based on requirements to hedge 30-50% by 1Q. Let’s make that a sensationalised 50%. So with market consensus for oil to average at least USD50 for 2016, does that mean you are of the view that Tap will be forced to hedge at USD10?? Did I get that right? I am referencing UBS reports by the way, I heard they are very reliable?
And your answer to question no. 2 please? It is not a question of whether there will be another CR or not, it is a question of how you come up with AUD20M as you delivered it with such conviction. Again based on an average oil price of USD30 for 2016 (see note above). As I have noted previously Tap will have excess of USD5-8M for admin costs and other incidentals even at USD30 (working with your assumptions). So where is this need for AUD20M come from?
TAP Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held