I am from the oil industry and remember when the price was $US10 (a barrel) in 1999 and everyone was saying its going to $US5 (a barrel) ... it was unbelievable to even comprehend a $US50 (a barrel) oil price. |
The basic principle for doing the hedging is that it's fairly heavy oil and they want to basically have early production hedged. They seem to have done quite reasonably. |
The figures were a little bit below my numbers but not a whole lot as I'd already taken out a bit on cyclone damage. We're seeing positive commentary on Pluto-3 well and what that encountered, and coupled with higher oil prices the market will probably look through this slightly disappointing result. |
The news should not have a material impact on (Woodside's) operations. Contract negotiations are an ongoing part of oil projects that are moving from exploration into development. |
We see a lot of people scrambling to develop new assets given the high oil price environment. |