With that, Charlie will get us started with an overview of the quarter.Charles Goodson Good morning. During the second quarter we produced 8.4 Bcfe or 92.4 million cubic feet of gas equivalent per day. The 92.4 million cubic feet of gas equivalent per day was comprised of approximately 76 million cubic feet of gas, 1,300 barrels of oil and 1,300 barrels of NGLs. Approximately 75% of our second quarter production came from our long life assets. We now posted four consecutive quarters of sequential production growth as our total production is up 14% over the last 12 months, with our NGL production up 43% since June of 2011. As we continue to allocate capital to the Mississippian Lime and liquids rich assets we would expect to see similar growth rates in liquids over the ensuing 12 months. Revenues for the quarter were $33.4 million with product price realizations including hedges of $111 per barrel of oil and $2.23 per Mcf of gas. NGL product price realizations averaged $40 a barrel. In our operations press release yesterday we announced a second significant discovery at La Cantera, the Broussard in stage #2. This well was drilled to a total depth of 19,150 feet and logged 310 feet of net pay in the Cris R massive main objective. The well also logged approximately 200 feet gross pay – probable pay in sands above and below the main reservoir. The Broussard at stage #2 is 190 feet higher on structure compared to the discovery well. As a point of reference, the initial discovery well logged 248 feet of pay, and has accumed approximately 170,000 barrels of liquids and 3 Bcfe of gas in four months with virtually no pressure drop, quite a prolific reservoir. We believe that the entire La Cantera structure is larger than originally projected, and without question the most significant Gulf Coast discovery in the company’s 27-year history.
Our completion for the Broussard stage #2 well was designed to accommodate a 30% higher production rate than the Thibodeaux #1. Therefore, we’re expecting to commence production in mid-September at 2,000 barrels of liquids and 35 million cubic feet of gas per day.At that time we’re expecting total gross daily production volumes from our La Cantera facilities of approximately 3,500 barrels of liquids and 65 million cubic feet of gas. In conjunction with our ongoing completion and production efforts, we’re evaluating the log and core date to determine if we have additional wells are needed to drain the expanded proven reserves and new pays. Based on what we have seen to date, we expect to drill a third well at La Cantera during 2013. This discovery could also set up additional drilling opportunities past 2013 as we develop this oil and gas field. From 2007 through the end of 2012 our Gulf Coast assets have generated over $300 million of free cash flow. Our La Cantera and Thunder Bayou projects should significantly extend the life of this Gulf Coast revenue stream and provide significant additional free cash flow that we’ll leverage off of in our future resource expansion efforts. Along with our La Cantera drilling activity, we have commenced 3D survey over our Thunder Bayou prospect, which is located approximately two miles north of La Cantera within the same regional structural complex and fault system. Today, gave an issue will provide additional imaging of the Thunder Bayou prospect, as well help to identify additional prospects in this prolific area. Thunder Bayou is expected to spud during the second quarter of 2013, and we have an estimated 34% working interest in this high-impact project that is a gross pre-drill estimate of nearly 20 million barrels of oil equivalent. Assessing our near-term Gulf Coast inventory, we’ll be drilling a moderate-risk oil prospect in Lafourche Parish, Louisiana. The well has a composed total depth of 13,400 feet and gross un-risked reserve potential over 1 million barrels of oil. We have 22% working interest in this prospect that is expected to spud later this month. Read the rest of this transcript for free on seekingalpha.com