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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (52975)	10/14/1999 11:27:00 AM
From: still learning	Read Replies (2) \| Respond to of 95453

Lingerfelt, Why do you say TMR is unhedged? See below from 10Q ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. We are currently exposed to market risk from hedging contracts changes and changes in interest rates. We have not previously utilized hedging contracts. A discussion of our market risk exposure in financial instruments follows. HEDGING CONTRACTS Effective July 16, 1999, the Company entered into certain hedging contracts as summarized in the table below. The Notional Amount is equal to the total net volumetric hedge position of the Company during the periods. The positions effectively hedge approximately 60% of the Company's current oil production. The fair values of the hedge are based on the difference between the strike price and the New York Mercantile Exchange future prices for the applicable trading months of 1999 and 2000. Weighted Average Fair Value at Notional Strike Price June 30, 1999 Amount ($ per unit) (in thousands) -------- ------------------- --------------- Floor Ceiling Oil (thousands of barrels): ------- --------- July 1999 - June 2000............ 2,457 $16.00 $24.00 $ 0