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Commitments
9 Months Ended
Sep. 30, 2014
Commitments [Abstract]  
Commitments

 

Note N – Commitments

 

The Company has entered into forward sales contracts to mitigate the price risk for a portion of its 2014 heavy oil and 2014 through 2016 natural gas sales volumes in Western Canada.  The heavy oil blend sales contracts call for deliveries of 4,000 barrels per day in October through December 2014 that achieve netback values that average Cdn$53.63 per barrel.  The natural gas contracts call for deliveries from October through December 2014 that average approximately 110 million cubic feet per day at prices averaging Cdn$4.04 per MCF, with the contracts calling for delivery at the NOVA inventory transfer sales point.  The Company also has natural gas sales contracts calling for deliveries in 2015 and 2016 of approximately 65 million cubic feet per day and 10 million cubic feet per day, respectively, at prices that average Cdn$4.13 per MCF for both periods.  These oil and natural gas contracts have been accounted for as normal sales for accounting purposes.