Edge Res Share Discussion Threads

[lazarus2010] 16/5/2015 13:06

Thanks for the update JB, do you know if it is a single well or a programme of wells?

and if you speak with BN again ask him why he has never answered any of my emails! ;-(

Thanks

[sleveen] 16/5/2015 12:48

JB great stuff.

Don't forget the reduction in op ex/bo, which should further increase profitability

[jamesiebabie] 16/5/2015 12:43

I have now had it confirmed from BN that we do have a new well application.

To put this into context, when we last drilled back in late 2013 WCS was worth about US$60/bbl or CAD$63; interestingly WCS is now worth US$51 or CAD$61/bbl.

So in effect we now have a price oil that is worth the same as back in November 2013 when WTI was at US$92!!!

How the looney and the differential has played out for us. :0)

[jamesiebabie] 16/5/2015 00:10

I think BN will want to tell us about a new drill program. :0)

I'm playing spot the difference.

[bigt20] 14/5/2015 16:52

Thanks Carp - that's what makes this bb so good.



Lazarus2010
13 May'15 - 12:58 - 3132 of 3140 0 0


.....shame he didn't have a 5 well programme lined up and hedged 100% at $91.40! That would have been very nice.

--> that would have made him a hero!

[lazarus2010] 13/5/2015 19:04

looking at the timing it looks like a sell, but it had no impact on the share price as we finished on the day's high which is a positive sign - I think ;-)

[carpadium] 13/5/2015 17:41

A pleasure chaps.

Interesting trade on ISDX timed 15.36, 160K @ 5.25p. Sell or delayed buy?

[sleveen] 13/5/2015 17:28

Carp

Thanks for sharing.

[lazarus2010] 13/5/2015 16:55

some life on the tsxv also. 64k and 5k buys at C$0.10

[mark10101] 13/5/2015 16:41

Yep good to see some life coming back, a few buys at the end. Let's hope they carry on tomorrow.

[lazarus2010] 13/5/2015 16:31

5.5p close, nice!

[1628386] 13/5/2015 14:52

Yes thanks Carp. He did take the time to reply in full to you which is great to see. I noticed his last couple of updates have been very detailed too, which I guess is a response to feedback he received :-)

[lazarus2010] 13/5/2015 12:58

Thanks for sharing that Carp. BN has never replied to any of my emails!? shame he didn't have a 5 well programme lined up and hedged 100% at $91.40! That would have been very nice.

[carpadium] 13/5/2015 12:46

On the subject of hedging I enquired back in late Jan as to what, if any, hedging plans would be April onwards. This is the reply I received;

We have just under 20% of our oil production hedged until the end of March at US$91.40 WTI per barrel until the end of March. We (or others) are unlikely to hedge production at these prices but we all have the option to purchase a floor, so to speak. The lower the floor price, the cheaper the option. We’re examining the economics of purchasing that type of insurance (my term).

On hedging in general, we do not (and in my opinion, almost everyone should not) hedge to try and secure a “good price” or the “right price” with the hopes of hitting a high price, we hedge simply to protect a capital plan or to ensure the production coming in the door will fund the specific project/item it is intended for. If, for example, we wanted to ensure that we could drill 2 wells in Q4 2015, then prior to initiating that project, we might hedge a certain amount of production (the amount of production is what we control) at the price being offered by the futures. In our case, we are not intending to embark on a drilling program in the near future so we do not have the requirement at the moment to hedge an amount of production to protect those specific future capital plans (because they don’t exist right now).

Great to see we're off and running once more, per ardua ad astra! Hopefully a May update prior to June finals will keep momentum rolling.

[mark10101] 13/5/2015 10:33

Good to see buys still coming in.

[lazarus2010] 13/5/2015 09:42

1628...send an email to Brad ;-)

[1628386] 13/5/2015 09:39

Hi Laz

I was thinking more of hedging the WCS/WTI Diff and exchange rates as these are variables in our favour and historically speaking they look a good time to lock in

[lazarus2010] 13/5/2015 09:35

1628...if Brad can see decent profits at current levels then I wouldn't disagree. A 12m hedge on 20% of oil production would be reasonable considering a) if it goes against us then it takes another 20% of production to cover the loss, thereby leaving 60% of production to benefit from a rising price; and b) if production declined rapidly for some unknown reason, we might have to buy in oil to supply the hedge, which would be a disaster. We need more wells to balance out declines and problems with individual wells in order to take a bigger (%) hedge imho

[sleveen] 13/5/2015 09:33

LW

You back in yet?

[mark10101] 13/5/2015 09:28

Looking very strong today, scarce liquidity and demand = boom.

[1628386] 13/5/2015 09:19

Hi Laz

Only one buy from me today as I have been building over last few weeks.

Something I forgot to mention are the opportunities Brad has to lock in some of the current tail winds such as a forward exchange contract or a derivative to lock in the current WCS/WTI differential.

Hedging WTI at $60 might not seem attractive but locking in the exchange rate and differential is a nice option to have.

[sleveen] 13/5/2015 09:09

By my reckoning fiscal Q4, on the back of the cost cutting, will be cash generative but perhaps merely $100-200k.

[lazarus2010] 13/5/2015 08:50

I was thinking more of calendar year rather than financial. From April there has been a big improvement in most parameters affecting O&G companies (gas still being quite weak but for EDG this is a minor problem)

[carpadium] 13/5/2015 08:47

Laz..aren't we only half way through Q1 and currently enjoying extremely sound netbacks?!