Steven A. Cossé, President and Chief Executive Officer, commented, “The second quarter of 2012 saw meaningful contributions from both the upstream and downstream business segments. Our Eagle Ford oil development activities have continued the growth momentum, with daily production volumes exceeding 14,000 net barrels of oil equivalent in recent days. Field development work at our important Kikeh oil field continues to go well. In the Gulf of Mexico, we were successful in acquiring 14 new exploration blocks in the recent lease sale and our Board recently sanctioned the development of the Dalmatian property in the DeSoto Canyon area. We continue to be encouraged about the Company's exploration program, where in the Central Dohuk block in the Kurdistan region of Iraq our first well has reached target depth and is now being tested and our remaining 2012 drilling program calls for offshore wells in Malaysia, Congo, the Gulf of Mexico and Australia. Downstream operations remain steady in both the U.S. and U.K. as we continue to offer value priced fuel products to the driving public in both markets.
“We anticipate total worldwide production volumes of about 183,000 barrels of oil equivalent per day in the third quarter of 2012. Sales volumes of oil and natural gas are projected to average 179,000 barrels of oil equivalent per day during this period. We anticipate full year 2012 production volumes of 193,000 barrels of oil equivalent per day. At the current time, we expect net income in the third quarter to range between $0.90 and $1.15 per diluted share. Exploration expense should total between $50 million and $120 million during the quarter. The third quarter estimate includes projected earnings from our downstream businesses of approximately $45 million. Results could vary based on commodity prices, drilling results, timing of crude oil and natural gas sales, retail marketing and U.K. refining margins, and foreign exchange movements.”
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