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Before we get started, I'd like to mention that this conference call includes certain forward-looking statements, based on our current expectations. The risks associated with forward-looking statements have been outlined in the earnings release and in our SEC filings. We may also refer to certain non-GAAP financial measures in our discussion.Management believes such measures are important in looking at the Company's historical and future performance and these are commonly referred to metrics in the industry. These measures are provided in addition to and should be read in conjunction with the information contained in our financial statements, prepared in accordance with GAAP included in our SEC filings. At this time, I like to turn the call over to Greg for a review of our quarterly results. W. Greg Dunlevy Thanks Brad and good morning everyone. I will first provide a brief review of our financial results for the second quarter before reviewing our updated guidance items. I will then hand the call over to Brian and Paul to review our production, development, and exploration programs. Overall our results for the second quarter were generally consistent with prior expectations. We had one Jubilee sales lifting during the quarter net to us of approximately 1 million barrels of crude. This generated total revenues of nearly $113 million for Kosmos, with the lifting price at premium of $0.77 per barrel above the Brent settlement price. With regard to our net production versus sales during the second quarter this year, we under lifted by approximately 240,000 barrels and our cumulative under lift position was around 500,000 barrels at quarter end. Our third sales lifting for the year occurred in later July for nearly 1 million barrels and it will price slightly above August monthly Brent settlement average. On the cost side, our product expense for the second quarter 2012 included 10 million associated with the enhancement program for Phase 1 wells at Jubilee.
Excluding these work over cost, the average production cost was a little over $9 per barrel. Exploration expense was $17 million for the period, being primarily composed of some seismic, G&G studies and the second quarter costs associated with the Teak-4A well.General and administrative costs were slightly lighter than expected at $35 million for the quarter with 50% non-cash long-term equity compensation expense consistent with prior periods. Tax expense was $22.5 million for the quarter with about two-thirds of this attributable to our Ghana operations. We also incurred additional book tax expense as a result of a change in our deferred tax asset position related to the vesting of stock awards under our long-term equity compensation program. Combined we reported a $0.07 loss per basic and diluted common share for the second quarter of this year. Cash and cash equivalents remain robust at approximately $630 million on June 30, 2012 and debt was unchanged from prior levels. Our overall financial position, combined with growing near-term cash flows from Jubilee have us well positioned to continue executing our meaningful development in exploration programs. Capital expenditure for the second quarter were approximately $120 million, bringing the total for the first half to $250 million. In this morning's earnings, we updated our capital spending outlook for the year, which is now estimated to be $500 million. This is a $100 million increase from our original guidance, reflecting lower spending in Ghana and higher spending in accelerating our exploration of base in opening petroleum systems in new areas. At Jubilee, the success of our acid stimulation program has replaced the need for drilling sidetracks. In addition, we have reduced the extent of our appraisal activities for the discoveries in the West Cape Three Points blocks, as we continue to assess the most optimal development options for the discovered resources there. As part of our continuing portfolio expansion, we've slightly increased our overall exploration capital spend with funds allocated this year to the seismic programs in Morocco, Surinam and Mauritania, as well as to our new business opportunities. Read the rest of this transcript for free on seekingalpha.com