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КОрпорация Кодиак Ойл & Газ Message Board

  • winallin12 winallin12 Aug 31, 2013 9:13 AM Flag

    Polar and Smokey Hedging

    Have not really looked at this but I doubt there was a big rush to hedge the initial production off these pilot projects for two reasons. First would be the uncertainty of the results and second these projects were started up with high prices.

    I am sure a percentage of this production is now hedged but at what number? Since these two projects are effectively doubling Kodiak's short term production the hedging or immediate lack there of is a big thing.

    So Ed this is up your alley, how much of the Polar production has been hedged for the 3rd quarter. I suspect most of the initial production is being sold at market

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    • Winallin:
      You are one of the very posters that post accurate data. Your 211,000 Barrels of Oil Hedge is for the entire year 2013.
      I doubt there was any more hedges since 2nd Quarter 10Q was issued on August 12th.
      2.000 of the 21,000 Barrels Hedged were subsequent event(after June 30th) . In the Past; Kodiak increase their Hedges after a quarter ends.
      The good points on Kodiak:
      1. In the 2nd quarter they really increased their Natural Gas Production. I am assuming Kodiak has finally hooked up many more Wells instead of faring the Gas off.
      Kodiak is still flaring off lots of Natural Gas.
      2. With higher Oil & Natural Gas Price the PV-10 Reserve valuation at the End od the Year will jump Up Big Time.

      Very Best of Luck.

    • Looking at Kodiak's latest SEC filing they had only a bit over 21,000 bopd hedged. That means they have perhaps 20,000 bopd unhedged for Polar and Smokey as they came on line. This is a unique situation for Kodiak and being fortunate to bring these two projects on line at a time of high oil prices they should see huge benefits to the bottom line in the 3rd quarter.

      This is not my area of expertise and I am only going by what Kodiak has filed with SEC so do some of your own DD on this but Kodiak likely will have only 50% of its production hedged in the 3rd quarter.

      And then there is Syria