I love this part - and so does the market today, finally getting some positive reaction to earnings:
Neil Dingmann – Dahlman Rose
And then do you anticipate going forward on any type of hedges?
Manolo Zuñiga
Not yet, given that it’s a brand new field with only a handful of wells, anything can happen in one well and then you’re committed to certain hedges. It is difficult. Fortunately for us, the IFC financing is not requiring any type of hedge. They understand this issue. They understand also that fact that we have a very focused production in one platform. This is why the need for us to expand our projects and go to Albacora, Delfin, Block XIX, and try to bring revenues from other sources is key, which I will diversify. There’s always an inherent risk of having just one production coming from one place, as you will know, Neil. And this is why the Shell deal is so good, because in the next few years, Shell will put in the money to upgrade gas reserves and as you will know, they take time to develop. Meanwhile, we are taking care of the oils and putting it into production as fast as we can. So it is a great deal for us. |
