Senex Energy Limited (Senex, ASX:SXY) has moved to protect the company’s oil revenues by securing a floor price for oil sales from January to June 2015.
The protection has been put in place through a combination of put options and zero cost collars. These facilities have the effect of guaranteeing an average Brent crude floor price of A$68 per barrel for 720,000 barrels of oil sales in the six month period. The collars establish a ceiling Brent crude price of A$84 for 460,000 barrels of oil sales in that period, with sales in the three months to the end of March 2015 constituting over 70% of the volume subject to the ceiling price.
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