I have mentioned this before. I believe they should lock in another hedge, not a collar. The time should be until the end of October 2010, The price would be north of $80, so lets assume $82. This would give us an average of $80 WTI for 5000 bbl/d. That would give us a secure cash flow until Algar comes online. I don't believe OPEC would let oil go too far north of $90 and I also don't believe the economy is strong enough to sustain $90 plus oil, so the upside may not be big. The downside on the other hand is, well we have seen what the downside can do.

We don't need to roll the dice on the oil price, higher production of 1000 bbl/d basically is equal to a $ 10 WTI increase.