We actually know our cash break even from the last quarterly and its well and truly in the twenties...
The true break even is in the $40's
this means with hedging and without replacing reserves at "previous acreage purchase prices" we can sustain very well for some time... this focus on the WTI in a company 80% hedged for 18 months with the 6 month contract at $90 and with OPEC yet to meet plus cash costs as low as we have is absolute garbage...
Im not saying the sp wont fall further.. seek advice, do your own thing, but look at the long term picture. look at the economics of many many companies trying to supply oil below $85 and it aint gunna last for long... The Saudis and OPEC can least afford it ... remember these guys import everything except oil, sand and extremists....
One persons doom and gloom is another opportunity... when they get fear ful its time to be ready to get greedy and vice versa
SEA Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
