This and all statements under the statement of historical fact are forward-looking statements within meeting of Section 21E of the Securities and Exchange Act of 1934 and Section 27A of the Securities Act of 1933.The forward-looking statements are subject to numerous risk and uncertainties including those described in the Form 10-Q for the quarter end of June 30 of 2012 which we filed yesterday. Our Form 10-Q for the year ended December 31st, 2011 and our filings with the SEC, all of which are incorporated herein by reference. I now would like to turn the call over to Keith Larsen. Keith Larsen Thanks, Reg, and good morning ladies and gentlemen. I will begin the call with an overview of our quarter end of June 30th, 2012 operational highlights. At June 30th of 2012, the company has 48 gross, 13.96 net producing wells, which includes 32 gross in basin wells, 3 gross both coast wells, 11 drills up on Chuck wells and our Booth-Tortuga prospect and two gross Eagle Ford wells. The company produced 119,783 BOE during the three months ended June 30 of 2012 with average daily net production during the quarter of 1,305 BOE per day. This represents 16% increase from production volumes in the second quarter of 2011 and a 6% sequential increase from production volumes in the first quarter of this year. During the first six months of 2012, the company received an average cash flow of $2.1 million per month from its oil and gas production. Revenue from the sales of oil and gas were $8.5 million as compared to $7 million on the second quarter of 2011, an increase of 21%. Moving on to operations in the Williston Base of North Dakota under the Yellowstone program, we completed one drill in .04 net wells during the quarter. The State 36-1 well, which is the second fuel well in the state unit, was completed mid-June and have an initial production rate of 4,182 drills BOE per day.
Two additional gross wells are anticipated to be drilled with [inaudible] during the balance of 2012. Drilling and completions continued under the Zavanna program during the quarter at an aggressive phase. During the quarter for gross .83 net wells were completed in the Yellowstone and SE HR prospects.The Skorpil #1 well had an early 24-hour flow back rate of 1,533 BOE per day. The Larsen #1 well had an early 24-hour flow back rate of 1,215 BOE per day. Slawson Exploration Company operates one unit in the SE HR acreage block. The Hatchet #1 well commenced production on May 7th with an early 24-hour flow back rate of 1,091 BOE per day. Subsequent to quarters end, three additional wells were back stimulated under this program with 35 stages and also a turnover to the production. The Skogen #1 well have an early 24-hour flow back rate of 1,839 BOE per day. The Kepner #1have an early 24-hour flow back rate of 1,871 BOE per day. The Wells #1 well had an early 24-hour flow back rate of 1,017 BOE per day. Currently, the operators are drilling in the horizontal section of the oil bar is the Witt #1 well. The well is scheduled to be fracture stimulated in September of this year. Our current working interest and that revenue interest in each of the mentioned wells are available in our press release published yesterday for reference. Our recorded initial production rates in the Zavanna program today have been pulled back through a restricted choke. Looking at the program going forward, an initial well has now been drilled in each of the Yellowstone acreage units and therefore all leases are now held by production. The operator is now focusing on joining the remaining SE HR initial well units to early summer of 2013. Read the rest of this transcript for free on seekingalpha.com