So in the second quarter we now are over 50% crude oil production, which, as you know, with current crude oil prices around $93 to $95 a barrel have significantly better margins than what we’re experiencing on natural gas at around $3 an Mcf. So that is something that not many companies can do is direct their capital so quickly and change their production mix so quickly, which has allowed us to report these substantial results. That will continue throughout 2012.Our capital of $325 million for upstream is geared to these two oil projects being the Williston and the Eagle Ford. We did announce earlier this week that we have moved into another region of the South Texas area called the Pearsall and we’ve actually spud our first well. That will be a test well to that formation. We will end up completing that well in the Eagle Ford.
Magnum Hunter Resources' CEO Discusses Q2 2012 Results - Earnings Call Transcript
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