So I see AAV has hedged some of their gas with a collar, not the greatest prices and I"m wondering if we'll see more of this, driven in part by the banks since they often seem to look for hedges in this type of environment, no idea if AAV's was driven by the bank... How the banks deal with outstanding credit lines will be interesting to say the least in the next while. Some of these companies are making the transition to oil but their existing capital structure and debt have previously been driven by natural gas plays, some risk from the banks I'd say. And then to complete that thought too, I wonder what bank profits will be like, seems like some of their portfolios are going to be shrinking, don't know how large a component O&G is.
stockwatch.com
Advantage Announces Natural Gas Commodity Price Hedges for 2012
TSX: AAV, NYSE: AAV)
CALGARY, April 9, 2012 /CNW/ - Advantage Oil & Gas Ltd. ("Advantage" or the "Corporation") announces that it has entered into the following natural gas commodity hedges:
Term of Contract Volume Floor Price Ceiling Price
Natural gas - AECO
May 2012 to December 2012 37,912 mcf/d Cdn$1.85/mcf Cdn$2.70/mcf
July 2012 to December 2012 28,434 mcf/d Cdn$1.85/mcf Cdn$2.71/mcf
These hedge positions will reduce cash flow volatility during 2012 and provide downside price protection especially if North American natural gas storage levels continue to grow during this period of extreme supply and demand imbalance. The total natural gas volumes hedged as of July 2012 represent approximately 51% of our current corporate production, net of royalties.
AND CMT.TO
Compton's lenders lower credit to $110-million
2012-04-09 09:12 ET - News Release
Ms. C. Leigh Cassidy reports
COMPTON ANNOUNCES AMENDMENT TO CREDIT FACILITY AND ENGAGEMENT OF FINANCIAL ADVISOR
Compton Petroleum Corp. has received a notice from the lenders of a reduction in the credit available under its credit facility from $140-million to $110-million, with any excess drawn over the available amount due May 7, 2012. The lenders have indicated they are supportive of the corporation's plans to explore recapitalization options as outlined below. The due date may be extended, at the discretion of the lenders, based on Compton's progress with its recapitalization. |
