Excellent post Rebels, I agree with almost everything you wrote.

Along with surviving the crisis, I think the hedges would probably cause less concern during a downturn, so that GD production wouldn't be curtailed so quickly. That really hurt, and also in hindsight, it's too bad there weren't already hedges in place a year ago.

I'm leaning towards $60's oil at a minimum, because it seems that's where OPEC wants it, and the Saudis, Kuwaitis, and UAE amongst others are cooperating and it appears they can pretty much set the price wherever they want it ... possibly mid $70's. I wonder if management felt POO was heading south again, if they'd look for even further hedges?

What does everyone think of the $150M or so of debt financing we're looking for, is that factored into the SP already? I suppose it all depends yet on pricing, as if POO is strong it would be a good sign for Algar moving forward.

I understand there are some other underlying concerns floating about, including the light/heavy differentials, and the Canadian dollar strengthening. Anyone have further info on these situations? It sounds like nothing ever goes as smoothly as it should for us ... gotta turn around at some point though. Construction has started in the States, lots of fresh asphalt hitting the roads.

-bbq