Callon Announces Additional Natural Gas Hedges.Energy Editors/Business Editors NATCHEZ Natchez, city, United States Natchez, city (1990 pop. 19,460), seat of Adams co., SW Miss., on bluffs above the Mississippi River; settled 1716, inc. 1803. , Miss.--(BUSINESS WIRE)--March 21, 2003 Callon Petroleum Company (NYSE NYSE See: New York Stock Exchange :CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) (NYSE:CPE.PrA) today announced it has hedged an additional 1.2 billion cubic feet (Bcf) of its natural gas production during the six-month period from May 2003 through October October: see month. 2003. The hedges were implemented through derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. transactions in the form of no-cost collars. The new hedges cover 200 million cubic feet (MMcf) per month for May 2003 through October 2003, providing for a floor price of $5.00 per thousand cubic feet (Mcf) and a ceiling price of $5.80 per Mcf. Previous hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. transactions by the company cover 4 Bcf of its natural gas production for the 10-month period January January: see month. through October 2003. Based upon the company's natural gas production rates for the first quarter of 2003, existing hedges represent 45% of natural gas production for the 10-month period January 2003 through October 2003. The company's natural gas hedges, by calendar quarter, consist of:
Previous New
-------- ---
Volume Average Average Volume
Quarter Hedged Floor Ceiling Hedged Floor Ceiling
Ended (MMcf) Price Price (MMcf)
(Mcf) (Mcf)
3/31/03 1,700 $3.68 $4.77 -- -- --
6/30/03 1,300 $3.55 $4.73 400 $5.00 $5.80
9/30/03 750 $3.50 $4.76 600 $5.00 $5.80
12/31/03 250 $3.50 $4.76 200 $5.00 $5.80
-------- -------
4,000 1,200
Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950. This news release contains projections and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including statements regarding the company's ability to fund its future obligations, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion