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Ontario's middle east | You got the gist of it Kevin. We have offered what the OP asked about. We call it an Avg Price Contract. Usually it just gets executed once a week. Pretty cheap and easy to administer. An avg of the spring pricing is a lot better than no plan at all. We never have had much producer interest in it and that may reflect the fact that I'm not a big proponent. As you know, I urge them to figure out a COP based price and let the target work. A while ago I told you guys a symptom of slow origination would be a rehash of old contracts that most people have forgotten about. Hopefully (for guys that want to write them) they will be mysterious enough to make you think they are a magical silver bullet answer to all your marketing dreams, but not so scary you won't sign them. The double obligation is another one. Like Sat said, there ain't any magic. These things are generally driven by selling option premium. Not that it is all bad but my rule of thumb is come home and explain it to the wife. If you cant do that, you probably don't fully understand the risk, so find another plan. | |
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More on HtoA, questions of my own.
