FieldPoint Petroleum Corporation announced details of a hedging agreement that it has in place for the next six months.
Roger Bryant, Executive Chairman for FieldPoint, stated "The board of directors has decided that it would be wise to protect cash flow by hedging, and we have put in place a costless collar with an $87.00 floor and $108.00 ceiling. This will be in effect from October 1, 2013 to March 31, 2014. The Company decided to hedge 200 barrels of oil per day, believing that this would give us sufficient protection should dramatic price reductions occur, even though this represents only about half of our current daily production."
Phillip Roberson, COO/CFO for FieldPoint, added "Hedging provides insurance against lost revenue, and this collar provides a unique form of insurance whereby we only make a payment if oil prices exceed $108.00 per barrel. If oil prices reach that level, we should not be upset by having to make the payment. I believe that your board of directors has chosen wisely to put this program in place."