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At this time, I will turn the call over to Energen’s Chairman and CEO James McManus. James?James McManus Thanks Julie and Good morning to you all. This was another really excellent quarter for Energen. Earning adjusted for non-cash market-to-market gains of $0.73 per diluted shares, the first call estimate of $0.62. Our second 2012, Oil and NGO production increased 40% year-over-year, our Permian Basin production alone was 54% year-over-year and our total production was up 21% year-over-year, even though we’re not focusing on natural gas. And our third balance spring was results continue to exceed our model and our Wolfberry well performance continues to meet our expectations. Last quarter, we told you about one of the third Bone Spring wells that had the highest initial rate in the play that we were aware of, this quarter, the Black Mamba 1-57 #1H in Loving County tested initial stabilized rate of 2257 BOE per day, 69% oil and that blew the first quarter well out of the water by about 500 barrel of oil equivalents a day. Once again, this well was not tested, wide opened, but rather on a 16/64 inch choke and had a pressure of 39,000 PSI so it obviously could perform even better than that. But the biggest news it that we’ve added 1230 horizontal Wolfcamp and Cline locations to our potential drilling inventory in the Midland Basin and Eastern Shelf. Clearly, the pace of drilling in the horizontal Wolfcamp and Cline plays have increased and more information is now available that supports the viability of these emerging plays across much of our Midland Basin acreage as well as in Mitchell County on the Eastern Shelf where we have legacy water flood operations. Based on well data and internal evaluations by our team of geologists and engineers, we believe that our current acreage position in the Midland Basin and the Eastern Shelf hold the potential for 860 drilling opportunities in the upper Wolfcamp and Cline as well as 420 potential locations in the middle and lower benches of the very thick Wolfcamp Shale formation.
Let’s take a look at the maps we have posted to our website beginning with an overview of the Permian Basin. If you’ve had a chance to pull those out, hopefully what you’ll see is we’ve sort of updated a little bit our total acreage position now to 275,000 acres and what we have done is overlayed our outlines of the new plays, the Cline play and the Wolfcamp play, particularly in the Midland Basin, we’ve also added an outline of the Wolfbone play in the Delaware Basin although we’re not active right now on the vertical play. And then on the left-hand side of the slide, we give you whether the play is vertical or horizontal and what we’re focusing on right now in each basins. If you then go to slide two, we’re going to give you a much more detailed view of how our acreage lies within these plays.Most of you are familiar with our Wolfberry, so I won’t really cover that. Again, you can see our performance there, but obviously what’s new here is the Wolfcamp horizontal play, we’re showing 64,000 net acres in there and 785 potential locations on 160 acre spacing. And if you look at the map, down in Regan County and you go a little bit north, you’ll see that the red circle there where it has drilled eight horizontal Wolfcamp wells, the last two have been and 6,000 foot laterals and they’ve had very impressive IP rates of 900 per day. So just to the Southwest. And then we also, as many of you know, participated in a well with Laredo where we have a red dot right there on the line between (inaudible) Glasscock County. Then we had a 21% working interest that had 700 barrel oil of equivalent per day sort of early IP rate from that 80% oil.
So we feel very good about this particular acreage, particularly in the southern portion of the region, but also that the play may have viability outside of Glasscock and (inaudible). In addition to that, we’ve identified 80,000 acres in the Cline horizontal play with 495 potential locations on 160 acres spacing. And again, if you look at the green circle above our acreage in Glasscock county you’ll see that the rate it was drilled 29 horizontal Cline wells bit of IP did an average of 600 barrel of oil equivalents per day.Read the rest of this transcript for free on seekingalpha.com