Western Gas Resources ( WGR) established hedging positions for 2007. The company will hedge115,000 million British thermal units a day, with a minimum price of $7 a MMBtu and an average maximum price of $14.90 a MMBtu, using costless collar structures. The company established hedges on an additional 30,000 MMBtus a day for the second through fourth quarters of 2006. This is in addition to previously announced 2006 hedging positions of 85,000 MMBtus a day for the full year using costless collar structures with a minimum price of $7 a MMBtu and a maximum price of $10.25 a MMBtu. The company also established propane hedging positions for the second through fourth quarters of 2006. The company will hedge total 140,000 barrels a month, with a minimum price of $0.83 a gallon and an average maximum price of $1.04 a gallon. In addition to the 2006 and 2007 hedging positions, the company has basis swaps in place for 2008 for 102,500 MMBtus per day at various sales points, at an average differential to NYMEX of $1.09. "The strong forward market has allowed us to lock in favorable costless collar structures for a significant portion of our 2007 equity production and additional collar positions for our 2006 equity production," the company said. "At these levels, the minimum prices and basis hedges preserve solid returns and the maximum prices allow meaningful upside exposure. We also hold firm transportation contracts to the Mid-continent and eastern markets, which help us to optimize prices received for our natural gas and avoid transportation bottlenecks."