We appreciate your time this morning as we discuss our second quarter results. Given the positive response in the format of our call from our last quarter, we again will attempt to keep our scripted comments to a minimum to leave plenty of time for Q&A.As always, please reference the news release, and our filing on Form 10-Q, both of which were made available last evening, for further details and full disclosure of the topics we are discussing today. We're not going to recite all the financial numbers that we issued, since we know all of you can read them directly off our news release and 10-Q. Last evening, we reported earnings per share of $0.10, which is in line with the consensus expectations of second quarter 2012. We also reported adjusted EBITDA numbers of $68 million, driven by oil and gas sales of $86 million. These are solid results that we expect to improve during the second half of 2012. Also, a couple of weeks ago, we reported our second quarter average daily sales volumes of 12,700 barrels of oil equivalent per day, which represents a 20% growth from the first quarter of 2012 volumes of 10,600 barrels of oil equivalent per day. We've provided an update on our completion activity in yesterday's earnings release, where we announced initial rates on 3 wells with 2 additional wells just beginning flow back. All of our wells down through the core area of the play continue to perform very consistently. I would note that we completed one Three Forks well in our block of acreage in northern Williams County that had initial rate of 225 barrels of oil per day equivalent. This was the well that had been drilled by the prior owner of the acreage that was acquired in January 2012. The well was stimulated utilizing white sand tailed in with resin-coated sand, which brought our completion cost down by nearly $2.5 million. Looking at overall economics per well drilled in this area, we believe we can achieve an internal rate of return of approximately 20%, assuming a completed well cost of $7 million to $7.5 million, with ultimate estimated of recovery of approximately 300,000 barrels of oil at an 82% net revenue interest.
While these wells did not meet the returns we're achieving on our other blocks of acreage, the wells are certainly economic. However, with that said, at this time, we do not anticipate further activity in these area in 2012 beyond the possible completion of one more well that, again, was drilled by the previous owner that awaits stimulation.From our operations standpoint, we are seeing improvement in both drilling and completion operations. We have evolved from 3 rigs, a year ago, to our current 7-rig count. A large part of the drilling gains can be attributed to increased drilling crew stability and the crew's growing interaction with our corporate staff that has developed by working together for 6 months, to a year, in some cases. We are gaining efficiencies by consistently running rigs in certain geographic areas where we have improved geologic knowledge, as well as further refining our drilling procedures. We believe that this reduced drilling time will allow us to maintain our current rig count, yet drill the number of wells we set out in our original CapEx budget. Read the rest of this transcript for free on seekingalpha.com