If I may inject my opinion...Lets start out with terminology, A pumper is the fella responsible for the daily maintenance, gauging, and closing the gate to the lease, on his way out! I believe you might be referring to the Producer in respect to the future price. In today's environment a good "producer" does pay "more" than attention to the future price of oil/gas/gold/soybeans...etc. Instead of hedging on the market he may hedge on the "Storage Capacity" available to him! I would think additional storage capacity might address this. With this said I can only assume CAVU knew the quality, value, profitability and expected production declining curve before commencing operations.(these appear to be older wells with history1)..Quality of oil? Oil is measured in specific gravity, referred to as "The gravity". Associated quality aspects would be the oils viscosity, BS&W (solids/water and yes sulfur)content. Any singular one can effect the price per barrel without question! Surely the company knew this prior, and based their economics on such....Producing 365 days out of the year...not unheard of, if you have the good fortune, and storage capacity! Don't over look the 300 mcf of gas. Natural gas also has quality/price ratio as well. Typically oil dissolved gas has a larger btu coefficient, and more liquids ie: heptane, octane, butane, hexane..all the anes..lol, also refereed to as "condensate." Good producers add this condensate back to the oil content hence improving the "Gravity" of the oil. My observation is the company is realizing better than expected initial production, which i guess you could say is hedging the production declining curve! And I might say "who" can confirm the price of oil might not double "up" sooner than later?
Yes the above is only my "opinion" take it or leave it!
And I would still like to know any opinion on the definition of a "strong hand" Keep Well.
Enertec
