Energy Partners, Ltd. has established its first hedging program following its emergence from Chapter 11 bankruptcy proceedings with the purchase of crude oil floors and the placement of swap contracts that cover the period from October 2009 to December 2011.
The recently completed commodity risk management program has met the conditions of the hedging requirements under the Company's credit facility. The volumes hedged in the fourth quarter of 2009 average approximately 2,788 barrels of oil (bbl) per day, representing approximately 58% to 70% of that quarter's estimated oil production. The majority of the volume hedged in the fourth quarter 2009 is in the form of puts with a floor of $60/bbl.
For full year 2010 and 2011, the total volume hedged averages approximately 2,722 bbls per day, of which the majority is comprised of swaps with an average NYMEX price of $70.02/bbl.
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