Hedging

March 11, 2014

Zargon uses hedges to help fund dividends and capital programs during periods of lower commodity prices. Our policies allow for the forward sale of:

  • up to a 70 percent maximum of estimated oil production volumes for the next 12 months. Then 60 percent for the next 12 months and 50 percent for the final 6 month period. 
  • not to exceed a 30-month period.

Current Forward Oil Sales

  • Q1 2014: 3,000 bbl/d at $93.22 US/bbl (WTI)
  • Q2 2014: 3,000 bbl/d at $92.61 US/bbl (WTI)
  • Q3 2014: 2,200 bbl/d at $90.51 US/bbl (WTI) and 400 bbl/d at $99.60 Cdn/bbl (WTI)
  • Q4 2014: 2,200 bbl/d at $90.51 US/bbl (WTI) and 400 bbl/d at $99.60 Cdn/bbl (WTI)
  • Q1 2015: 400 bbl/d at $91.73 US/bbl (WTI)

 

Current Forward Natural Gas Sales

  • Q1 2014: 6,000 gj/d at $3.33/gj (AECO)
  • Q2 2014: 9,000 gj/d at $3.69/gj (AECO)
  • Q3 2014: 9,000 gj/d at $3.69/gj (AECO)
  • Q4 2014: 7,000 gj/d at $4.01/gj (AECO)
  • Q1 2015: 6,000 gj/d at $4.25/gj (AECO)