The state of AOK, page-5

Oct 2014 ann.
"AusTex has substantially hedged its current production at oil prices well in excess of the current spot market. In keeping with the requirements of its Term Loan, the Company actively hedges its oil and natural gas production for at least 2 years. That hedging activity is designed to provide increased certainty on pricing of the sales of approximately 80% (and must be between 70% to 90%) of the Company’s expected production from currently producing wells as they naturally decline over that period. As such, AusTex

does not hedge the roughly 25% of its production attributable to royalty owners and production taxes."