The uptick in Contract and Services revenues and operating results in Q1 was actually led by our subsequent construction business which saw a 94% gross full utilization in Q1. However our well intervention business also had an increased operating result from Q4. Despite the fact that the Q4, our Q4000 and our dry dock in early March and the Seawell went into dry dock in late March.
Canyon, our Robotics business had a very active quarter utilizing 5 different stock market vessels at various times, during the quarter in addition to its four regular vessels in the long term charter. Our Oil and Gas production in the first quarter totaled 2 million barrels of oil equivalent, down from 2.2 million barrels of oil equivalent in Q4.
Quarter one’s production decline was impacted by the sale of our main pass field as well as the shutting of our Noonan gas well, along with normal decline rates. We continue to benefit from our oil production being sold at Louisiana light sweet prices, which is at a significant premium to West Texas intermediate prices, realizing 109 a barrel, net of our oil hedge contracts.
In addition, natural gas liquids production along with our natural gas hedge contracts allowed us to realize $5.82 from our natural gas production in Q1. Tony?Tony TripodoYes, thanks Owen. Continuing on slide 7, from a balance sheet perspective, we continue to strengthen our financial condition. Our net debt position which continues to decrease went from 609 million at year end ’11 to 560 million at the end of the first quarter. Our cash balances increased to 620 million at the end of Q1, from 546 million at year end. We did a bit of a re-haul of our capital debt structure during the quarter. First, we issued 200 million of new three and a quarter percent Convertible Notes to in 2032 and used the proceeds to buy back a 142 million of the 300 million pre-existing Convertible Notes which we fully expect to be put for repayment in December of this year. The remaining 158 million of the oil converts are expected to be put to us and retired in December. Essentially, we preserved a low-cost form of capital and convertible debt by issuing new 200 million Notes to replace the 300 million that would fully expect to be repaid by year end and reducing the net amount in this type of debt capital by a 100 million. Further more, we issued new 100 million of the syndicated term loan A and along with Revolver borrowings called and retired 200 million of our 9.5% Senior Unsecured Notes. Desired effect of this reshuffling results in a much lower cost debt capital structure. With this I’ll turn the call over to Cliff for an in-depth discussion of our contracting services results.Read the rest of this transcript for free on seekingalpha.com
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