Price Deck

By December 7, 2021No Comments

The price assumption being used at a particular point in time by a bank financing oil & gas projects for projected production which is not subject to a hedge such as a swap, option or collar. The price deck assumption will be revised by a lender on a regular basis and will typically be set at a discount to current / expected market prices, in order to reflect the uncertainty surrounding the price at which unhedged petroleum will be sold.