The Gulf of Mexico properties we acquired this year have gotten off to a good start. The integration of DOR has been smooth and production has been in line with our expectations through the second quarter. We do not plan to risk capital exploring for large, new fields but exploit existing properties and generate higher rates of return through recompletions and infill drilling to help us fulfill our 3-year goals. We were able to capitalize on a region of cheap oil with this acquisition, and it gave us a platform with a great operating team to further exploit inexpensive oil at a time of dislocation in the marketplace. Not only did we buy inexpensive oil, we are now able to sell expensive oil.As of August 1, the LLS mark was positive $18.75 per barrel over WTI, plus the acquisition of the Gulf of Mexico properties lowered our debt ratio a full turn and gives us more debt capacity to stay within our goal of approximately 3x leverage. We continue to feel comparable we can maintain our 25,000 barrel of oil equivalent per day production rate by spending $200 million of CapEx on drilling and recompletions.
SandRidge Energy Management Discusses Q2 2012 Results - Earnings Call Transcript
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