Existing and prospective investors are cautioned not to place undue reliance on forward-looking statements, which only speak as of the date hereof. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.Now, I'll turn the call over to King Grant, our CEO and President, for some introductory remarks. W. King Grant Thank you, Peggy. Good morning, everyone, and thanks for participating in today's conference call. Peggy and I are joined by Mike Decker, our Chief Operating Officer, who will cover operations. With the closing of our Uinta Basin transaction and unlining of our derivative contract and maturity and retirement in our revolving line of credit, our financial business unit is out with Gasco. Our cash position was $5.1 million at June 30, 2012. Our working capital was $6.8 million. Since June 30, our cash has increased $1 million to $6.1 million today. Our long-term debt consists solely of the $45 million 5 1/2% convertible notes due 2015. We plan to replace our recently matured revolving line of credit, which is a reserve back line with the new facility, which we're currently working to identify. We are gearing up our drilling program, which as we previously described is weighted towards the second half of the year. We opted to delay drilling, especially for natural gas until gas prices shows some indication of recovery. Our Green River oil program is in permitting, and we are optimistic that we'll be able to spud the first 6 wells early in the fourth quarter. With respect to the natural gas markets, we are seeing signs of price recovery. The second quarters are some of the lowest prices we received in the past 12 months for sales of our natural gas.
Gas markets are changing rapidly. In mid-April, the NYMEX prompt month natural gas contract traded at $1.90 per MMBtu. That marked the lowest price in more than a decade.Since that 10-year low, prices have recovered more than 60% to around $3.20. Our wellhead prices received and followed a similar path. To remind the listener, we have an internal projection of $3.50 wellhead price for our Uinta gas drilling project, which would generate a 10% rate of recurrent for drilling. This $3.50 price is prior to the beneficial effects of the drilling carry we received from our Uinta Basin JV partner, which would reduce the needed wellhead price well below recent levels. Of course, we do not intend to drill 10% rate of return projects, but the encouraging indications of a gas price revival are positive for Gasco and its shareholders. The recent low prices may be traced to 3 causes. First, the engineering success of hydraulic fracturing in reducing the cost and increasing the productivity of liquids-rich plays like the Eagle Ford Shale in Texas and Marcellus Shale in Pennsylvania. Second, the destruction of industrial demand that followed the recession of 2009. Third, the unseasonably mild winter this year that reduced demand for space heating in both home and commercial industrial markets. The seeds of a long-term recovery in natural gas prices are being sung this year. These effect -- these seeds affect both the supply and demand side of the equation. On the supply side, the number of rigs looking for natural gas has been on a steady decline over the last year. As of July 27, the North American natural gas rig count was 505 rigs, down from 877 a year ago. This is a 42% decrease in 1 year. Many industry analysts believe that the current rig count is below the number of which the fleet is able to maintain supplies at current levels. Consequently, we may begin to see a tightening in supply in the coming months. Read the rest of this transcript for free on seekingalpha.com