Our hedge book still provides us with solid protection for 2016 at prices above the current strip. We are hedged at 57% of our forecasted production for 2016 at $2.88 representing a 22% premium to the strip. On the oil side we are hedged at 63% of our forecasted 2016 production at $59 representing a 41% premium to the strip.
. LNG exports increasing as seven ships have left the first train at Sabine Pass since February, sailing across the globe as clean-burning American natural gas helps fuel the world. I'll note a second train is nearing completion.
The markets also looking at higher exports to Mexico and lower net imports from Canada. Increasing power generation demand and expansion of the gas driven industrial complex. The demand drivers for natural gas are compelling and our East Texas and North Louisiana assets and expertise are situated close to much of this demand … We have wells in Louisiana We reduced our LOE cost by 25%, compared to the fourth quarter of 2015, and we expect our operating cost to also to continue to decrease. Our drilling and completion costs are down 20% compared to 2015, all the while we've significantly increased the amount of profit we are utilizing in our completions.
To preserve our liquidity and our capital resources, we cut our 2016 capital budget to $85 million, a reduction of $192 million or 69% from 2015 and we are deploying that capital in our core area to increase reserves for location and increase the value of our East Texas and North Louisiana assets.
OUR management efforts that have improved our debt structure and provided structural liquidity. Focusing on our nearest term note maturity we have reduced our 2018 senior unsecured notes to $144 million, down $606 million or 81% from issuance. We have $256 million of liquidity and we do not have any debt maturities until the middle of 2018. We remain liquidity-focused to enhance our runway and continue implementing our improvement plan and we are evaluating additional capital structure initiatives. The second Haynesville shale well since 2012 in the Southern part of our Nacogdoches County acreage. The well has outperformed expectations The other three North Louisiana wells have cross-unit laterals of 7,500 feet and we expect drilling and completion costs will average $8 millio
Who is their new partner? they are raising production for a reason. The pipeline through Iowa-Illinois as oil goes through the break even level. LNP Cheniere has a couple terminals in the works for exporting.
the best thing is oil surprised every one and is holding the 45 $ WTI mark. I think it will rise all summer. LONGS win,
THE NEW DEBT? The stimulus that saved America. The depression saving money. THE GOP created the problem and Obama put us on solid ground. When you float 6 trillion to CHINA and Japan you kill growth... THE GOP IS the biggest enemy we have in America. BUSH KILLED our system. Banking drove the knife with lyar loans and debt that could never be played. The TEA party wanted all institutions to go BK and quit working . WERE WOULD we be!!! THE ANAYST and GREAT ECONOMIC minds and super DREAM TEAM ALL BACKED OBAMA on the restructure and supporting the SYSTEM. THE GOP would have not spent and we would be in CHAOS and a. THIS IS WHY the TEA Party is trash and full of radical wrong batsh!t crazy. I don't trust TRUMP as I do trust HILLARY,.
TRUMP thinks he can just walk in and re negotiate all the countries debt. THAT'S CHINA IDIOT!!!!! He is to stupid to be President. JAPAN and CHINA own the DEBT/ Does he actually think before he talks !!! NO!!!!!!!!! He wants to get tough with China and Mexico=wrong now and wrong through three BKs..... He will BK America.
Getting rid of immigrants and their businesses. !!! That's bad for the economy. Many are the type of people we need! Many have businesses going .......... Good workers. Just like getting rid of all Muslims and clumping all nationalities together. he creates problems with out solving nothing. He has a lot to learn. BUILDING walls? Isolation, deporting , and avoiding real problems. No wander the RIOTS are getting bad! He needs to address real problems. All the money going to the top 1%... Where is the PLAN? Give them tax breaks again? Corporate welfare? Sure he sees problems ____ NOW I have never heard a good )))Plan (((((((( out of that man. ONLY Problems and no practical plan.... He will be destroyed by Hillary.
WE must COMABAT swarms of stupid people with out a clue as to what America needs and is important. President candidates!!! TRUMP!!! REALLY? HE HAS no clue how to pass a law, get along or even politics among the parties. The first thing he is going to do is KILL TRADE with our currant partners. He wants to re-negotiate every thing. the immigrants serve a economic purpose and have businesses going. ITS anti-growth destroying what they made. #$%$ TRUMP . YOU GOT RICH during OBAMAS administration..... HE IS a LYING POS!!!! The economy is good and he got rich. HILLARY will even be better. IF he can not admit the world is better than 8 years ago he is to stupid to reason and lead.
Today we could rock. IT WAS a tough three days. The 25% drop Wednesday came out of no-where. I bet we get it back after the call. lets see. OIL is going up again. ITS at 45 again and holding.
TRUMP will ignite a never ending internal war.
WILL THE WALL BE BRICK? cEMENT OR NEVER ENDING PATCH WORK AND CHAIN LINK? . tHE RICH REPUBLICAN PARTY WILL BK America. The USA will be in the business of exporting people out of the USA and not have the funds to provide security letting them in. ISOLATION , war and patrolling the slums will guarantee babies will starve. The world with out TRUMP would have saved the tax payers a lot of money.
TRUMP WILL not be prepared again or even know the players. He will say China is the blame for the middle east problems . he was a broke bum 7 years ago. BK after BK. That's most his life in court and figuring a get rich quick plan. That's no way to lead a country.