We’re going to start out with a summary of the financial and operating highlights and then we will move in to a discussion of some of the drilling results from Q2 and our plans of for the future and then we’ll follow that by a Q&A session.Randy Neely will review the financial and highlights of the quarter starting on the next slide. Randy Neely Thanks Ross, good morning? First let’s note that all dollar figures that we speak of in this presentation are in US dollars. Gross revenues for the quarter were $148 million representing an increase of 30% over Q2 2011 and for the first six months of 2012, revenues were $307.5 million, a 45% increase over 2011. Revenues were up principally due to our increased production which averaged 16,978 barrels a day for the quarter and 16,850 barrels a day for the first six months of 2012. These production levels represent a 44% and 46% over the same periods in 2011. Q2 funds-flow from operations were strong at $35.2 million with the first six months at $71.3 million. These figures represent a 15% and a 28% increase over the same periods in 2011. Growth in funds-flow were lower than revenue growth principally due to the majority of our production growth coming from the West Bakr PSC which has a lower profit sharing arrangement than our West Gharib PSC. Q2 net earnings were $30.1 million but were again impacted materially by the accounting for the convertible debenture which on mark-to-market basis resulted in an $8.8 million gain in the quarter versus a $7.8 million loss in Q1. This occurred as a result of the market prices of the convertible debenture falling from $1.08 at the beginning of the quarter to $0.99 at the end of the quarter and while these fair value adjustments are made in accordance with IFRS, they do not represent a cash expense or an increase in the future cash outlay required to repay the convertible debentures.
Earnings for the first six months of the year were $41.1 million. On a diluted basis the company posted a second quarter and six months earnings per share of $0.25 and $0.50 respectively. The average price received for all our sales in Q2 is $95.84 a barrel, that’s down 9% from Q2 2011 and the average price received for oil sales in the first six months was $100.28 which is essentially unchanged from the same period in 2011 which is $101.46. As a percentage of Brent, the oil prices fees was approximately 88% thus far in 2012 versus 90% in 2011. This is principally due to a lower price being received for West Bakr crude and lower Yemen production which received near Brent pricing. We continue to achieve very strong after tax operating netbacks of $26.49 in the quarter and $27.02 for the first six months ended June 30 th. These figures are down fromQ2 2011 at $31.82 and for the first six months of 2011 at $30.32. This is chiefly as a result of 80% of our traction [ph] growth in Egypt coming from West Bakr which achieved a lower price and has a lower sharing profit oil than the West Gharib PSC and also due to the fact that S-1 production was shut in for the entire first half of 2012.During the quarter we collected $41.4 million in accounts receivable bringing our year, our first six months total to $56.9 million, $29.5 million of that amount was collected through a half tanker listing which was done in March and collected in April. We now have a full tanker listing schedule for the fourth quarter and subsequent to the end of the second quarter we’ve collected an additional $12.2 million. During the quarter we spent $37.5 million on capital expenditures which include the acquisitions of the subsidiary holding companies that own the interest in the South Alamein and South Mariut PSCs. Read the rest of this transcript for free on seekingalpha.com