Joining the discussion late but I checked the hedging policy with Robyn Lamont (CFO), a few weeks ago to see what remained, the $60 to $102 range and the way it operates as stated by yourself is correct and they have about 7,700BOO remaining of this hedge so should not be a huge impact. I am not sure how they are spreading this over the remainder of the hedge but considering they have 3 potential wells in the next 6 months this will only have a minimal impact by my calculations for example:
IF IF Rodney does as per Gene and Gary then the first 3 months could be 40,000 BOO at 27% to SSN = 10,800BOO they would get these at the higher price as the remaining production from Gene, Gary etc. would easily cover the 7.700 left in the hedge. So I expect the new prodution to be at the higher rates subject of course to them impementing a new hedging policy, which I am not sure what their strategy is.
The flip side is that they have been winning with the gas hedging policy as noted in the quarterly by payments made by Macquarie to SSN.
Always holding, researching and watching from afar. Please DYOR.
Entertaining thread I must say these days.
SSN Price at posting:
18.5¢ Sentiment: None Disclosure: Held
