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Please note that any statements and information provided today are time sensitive and may not be accurate at a later day. Our discussion today may contain certain forward-looking statements that are based on management’s beliefs and assumptions that are based on currently available information.We can give no assurance that such forward-looking statements will prove to be correct as they are subject to risks and uncertainties that are listed and described in our filings with the SEC. Actual results may differ materially from those expected. Our discussion also may include discussions of probable, possible or potential reserves or recovery. Such unproven estimates are more speculative than proven reserves. Now we will briefly review results of the third fiscal quarter and I will turn it over to Bob Herlin, our CEO. Bob? Bob Herlin Thanks Sterling and thanks to everyone for participating this morning. We earlier announced our quarterly results by a news release and with those detailed numbers are readily available to everyone, I will confined my remarks to some key results, operations and projects. Sterling will similarly review key financial results and I will follow with a few observations about our overall strategy and then we will take the questions. In short, we had a record operating quarter with earnings to common stock of about $1.3 million or $0.04 per diluted common share on revenue of $4.8 million, production of 619 BOE a day. These results are all improvement on a prior quarter and the year ago quarter and are achieved slight lower product prices compared to the quarter ended December 31st. About 96% of our revenues are from oil and natural gas liquid sales and that’s compared to 77% of our volumes. Now earnings were impacted by some unusual lease operating expense items in the Lopez and Giddings Field and I’ll cover that later in my remarks.
Starting with Delhi, gross production for the recent quarter increased some 9.5% over the prior quarter and they ran about 5,474 gross barrels per day, about 405 barrels a day net. I do like to point out that this is still less than half the projected peak rate as projected in the field and that peak rate won’t be reached into sometime late 2017, so production should increase in (inaudible).Production during the quarter was primarily result of CapEx in 2009 and ‘10. It did reflect just an initial limited response to the expanded 2011 capital expenditures. Our Delhi crude oil sold for about $113 during the quarter and that’s about 10% premium over WTI and about $2 a barrel less than the previous quarter. This premium continues to reflect substantial incremental value for the company. Now keep in mind that our reserve report, our reserves as of June 30th of last year were based on SEC flat oil price of less than $95 per barrel in the field, so we’re still getting far more than what’s in our reserve port. The calendar 2011 CapEx planned for Delhi originally was to complete the project in the Western half the field. However, the plan was expanded beyond original activity and with additional wells both in the Western half and also initial expansion in the Eastern half of the fuel. We continue to be very pleased with the progress and results of its enhanced recovery project. Produced oil gravity has yet to show a meaningful change due to CO2 injection and that bodes well for continued outperformance of the project and increased ultimate recovery. The improved performance continues to reduce the payout balance throughout our 24% conversion in working interest that’s now well below $200 million. All-in-all, our confidence level in both our proved reserves or probable reserves and the upside potential continues to increase.
I’ll talk about GARP for a second which is our patented technology. We continue to be very encouraged with the result of our two commercial demonstrations. This is of our patented Gas Assisted Rod Pump technology which we have trademarked as GARP. The first application has been in production for about four months now and has shown both relatively high utilization and a stable production rate of seven to eight barrels a day and 20 Mcf.Read the rest of this transcript for free on seekingalpha.com