RE: oil 7014 Nov 2014 07:51
The current SP is based on Saudi games re oil price. Many oil producers require a higher SP & what we have is temporary situation.
"Caza is merely using unconventional methods to extract the hydrocarbons at much higher rates than would be achieved with conventional methods. Caza believes these characteristics provide an opportunity to achieve acceptable IRRs at commodity prices that are much lower than those that currently exist. Although commodity prices have declined recently, Caza believes that this play continues to be viable, and plans to maintain its current drilling program. The Company is also protected from the impact of a lower oil price environment by having favorable hedges in place on approximately 75% of the Company's proved developed producing reserves, as well as an on-going hedging strategy in operation as part of the continuous management of its business risk."