Paul F. Boling
Thanks, Chip. We achieved record oil production of 76, 18 barrels per day, or 28% sequential increase from the first quarter of 2012, a record total production in the second quarter 2012 was 2,393 MBOE, or 26,297 BOE per day, a 4% sequential increase from the first quarter of 2012, production of 2,311 MBOE.
The 4% sequential increase in production was due to the contribution of new wells brought on during the quarter. Second quarter production growth would have been substantially higher had it not been for the impact of the sale of the Barnett Shale production to Atlas on May 1, 2012. We reported record adjusted revenues and revenues for the quarter adjusted revenues, including the impact of realized hedges, we’re $92 million in the second quarter, compared to $91.7 million in the first quarter of 2012.
Oil and gas revenues for the second quarter were a record $83.8 million, compared to $80.7 million during the first quarter of 2012. Similarly, oil revenue was a record $68.6 million in the second quarter and 82% of total oil and gas revenue. This compared $59.4 million of oil revenue in the first quarter, which totaled 74% of total oil and gas revenue. These increases were primarily driven by increased oil production and higher realized gain hedges, partially offset by lower gas prices.Average realized oil prices, including the impact of realized hedges, decreased to $97.97 per barrel, or a 11% in the second quarter, as compared to $109.65 per barrel in the first quarter of 2012. While average realized gas prices decreased 27% to $2.22 per Mcfe from $3.05 per Mcfe in the first quarter of 2012 As discussed before, we have an implied basis differential to WAHA for the Barnett Shale gas market at the well head, which averaged about $0.85 per Mcf for our second quarter gas production. General guidance for realized gains on derivatives in the third quarter of 2012 is $9.3 million to $9.8 million based upon strip prices as of August 6.