As outlined in the press release, the second distribution of approximately $0.50 per unit will be paid on or about August 29 to holders of record as it close the business of August 14. Payments to holders will generally be made 60 days following the end of each counter quarter, and the next distribution covering a period from June through August will be paid on or about November 30. Finally I would like to point out that the trust will file its quarterly report on Form 10-Q on August 13.Now let me turn the call over to Tom Ward. Tom Ward Thank you James and welcome to the SandRidge Mississippian Trust II Conference call, SDR’s second period results surpassed expectations by beating the target distribution. The successful performance for the period resulted in a distribution slightly under $0.50 per unit, which is approximately 8% higher than the $0.46 per unit target distribution. Now I’ll turn the call over to Matt Grubb for review of SDR’s production and drilling results during the period. Matt Grubb Thank you Tom. SDR’s production of 409,000 Boe exceeded expectation for the second reporting period by about 15%, which is 63,000 Boe more than the target estimate of 427,000 Boe. The production split for this period was 231,000 Boe and 1.55 Bcf of natural gas. All production exceeded targets estimate about by roughly 12% and natural gas production exceeded the target’s estimate by about 17%. During the period SandRidge brought about 33 new wells on production. In addition to the wells brought online, there were three additional wells undergoing completions at the end of the period. All process for the period were lower than assumed. However, the impact of these lower prices was mitigated by the trust of all hedges. Over the period, the trust was hedged on approximately 66% of this whole production at approximately $107 per barrel. These hedges allowed the trust to realize a price of $98.96 per barrel, which was about 6% higher than the wellhead price and 1% lower than the assumed realized price of $100 per barrel for the period.
Natural gas prices for the period were also below our assumptions. The trust realized the price of $1.80 per Mcf which was approximately 20% lower than the assumed realized price of $2.25 per Mcf. All sales excluding realized hedges made up about 82% of the total revenues while natural gas sales contribute approximately 14%. The (inaudible) hedges contribute about $1.2 million and made up around 5% of the total revenues for the period. This concludes our prepared remarks and I will now turn the call over for questions.Question-and-Answer Session Operator (Operator Instructions) Your first question comes from the line of John Ragozzino of RBC Capital Markets, please proceed. John Ragozzino - RBC Capital Markets Good morning gentlemen. Tom Ward Good morning. John Ragozzino - RBC Capital Markets When you’re looking at the play as a whole, I was kind of leading to some more comments on (inaudible), can you just comment on the availability of services and cost trends there, with given the activity level of your understanding? Tom Ward Yeah, in the play as the whole and also in relation to these trusts, the services have actually been very stable in trending down in the past year, both on the drilling side and on the hydroelectric action side. There is no shortage of services here. John Ragozzino - RBC Capital Markets Okay, are there any other potential hurdles that you might be keeping your eye on in the out years, be then infrastructure, logistical or anything else. Tom Ward None, that we see at this time. John Ragozzino - RBC Capital Markets And you gave an update with the release last week or so, on terms of the inventory and how far along you were with the drilling. Can you just give us some current update in terms of where we are today? Read the rest of this transcript for free on seekingalpha.com