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First my primary is focus is to increase shareholder value. All of Warren’s operations are carried out and all plans are developed with the focus on enhancing shareholder value and increasing our stock price. Our company had a strong quarter as sales volumes, oil and gas revenues and operating cash flow each recorded significant gains compared to the second quarter of 2011. Warren had a record breaking quarter in terms of oil production. Our oil production for the quarter increased 31% to 293,000 barrels of oil compared to 224,000 barrels of oil produced in the second quarter of 2011. Along with double digit growth and average daily sales volumes, Warren delivered improved gross margins as [ph]release operating expenses continued to be carefully monitored and controlled.Our cash flow from operating activates increased 61% to $32.2 million in the first six months of 2012 compared to $20 million in the first six months of 2011. Although, the operating environment has significantly improved during 2012 and we have obtained several key water injection permits during the year, we continue to face California regulatory challenges in obtaining water injection well permits. As we work through the regulatory process needed to install our WTU natural gas sales line connection to the Southern California gas pipeline. We are also working to increase our WTU flare limitations. We will continue to diligently pursue these permits and work with governmental authorities. Regardless, we are forecasting that we will meet our targets of increasing our oil production by 20% over 2011 and maintaining a positive cash flow after capital expenditures. Warrens’ management team has also [ph]expanded considerable time and effort in analyzing the current industry environment and Warrens’ position in that environment. The ongoing analysis is being conducted with the aim of developing and being responsive to options for the future. The analysis includes an understanding of our current challenges and opportunities.
We plan to be proactive in evaluating all alternatives to maximize shareholder value. With that overview, I will turn the call over to Tim Larken, our CFO.Tim Larkin Thanks Espy. Before I discuss the company’s financial results released earlier today, I would like to remind everyone that all statements made during our conference call that are not statements of historical fact constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could vary materially from those contained in the forward-looking statements. Factors that cause actual results to differ materially from those in the forward-looking statements are described in our Forms 10-K and 10-Q, other periodic filings with the SEC and our press releases. As Espy mentioned, we are excited about the balance of 2012 and beyond. Our cash flow from operations continues to be solid and we are in a strong liquidity position with cash flow from operations of $19.3 million for the quarter and as of June 30, 2012 we had $30.5 million available under our senior credit facility. Today, we reported net income of $5.3 million for the quarter or $0.07 per diluted share and adjusted net income of $4.8 million excluding gains from hedging activities of $500,000. Also, we achieved record oil and gas production of 499,000 barrels of oil equivalent for the quarter or approximately 5,500 barrels of oil equivalent per day. Additionally, natural gas production primarily from our Atlantic Rim Project in Wyoming was strong and overall natural gas production was flat at 1.24 billion cubic feet during the second quarter compared to the second quarter of 2011. The average realized oil price for the second quarter of 2012 was $95 per barrel, compared to $97 per barrel during the second quarter of 2011, a decrease of 2%. Our average realized gas price for the second quarter was $1.84 per Mcf, compared to $4.13 per Mcf in the second quarter of 2011, a decrease of 55%. Read the rest of this transcript for free on seekingalpha.com