Bob Sharron

Canadian Oil Sands, Penn West Energy Protected on the Downside

One more item as to hedging strategy -PWE management is EXTREMELY conservative and the hedging price going forward is around $68-$76 - Not anywhere near what one would have thought. (perhaps 120??? So 40% or more of the revenue is LOST by the hedging strategy. In fact, management stated in the call that they were tempted to hedge the entire production when the price of oil started to climb but the Board maintained its position that around 60% remain open to spot market pricing. Not at all what Jack had expected.