This is probably the slide that we get the most discussion on. It's our production growth. It's a big game changer going from one year to the next. It's something as we did our acquisitions late last year, early this year that we had some clean-up work to do; it took a little bit time to get out of the gate. I am extremely pleased to announce that I think we're clicking on all cylinders right now. From the drilling standpoint we've made great improvements in our drilling times. From a completion standpoint, we tried to lay this out to enter the Q2, how were going to achieve these particular numbers, average of something between 17,000 and 21,000 for the year and ex-rate of 27,000.We currently have one full time completion crew. We are completing on average five to six gross wells, four to five net wells every month. We'll continue to do that through the end of the year with that crew. We'll bring a second crew on here late this month or early next month that will probably have for balance of the year. I'd like to know we're actually not trying to catch up; this is really just kind of the program that we laid out the first of the year as we brought on more rigs. Lot of our three and four well pad drilling is coming to the completion stage. We had some mechanical issues we've talked about in the past. We've got all those wells or most of those wells patched, ready to go. We anticipate having them all completed here by year-end. So we've got a lot of work to do in the next four to five months. We're excited about and I think these numbers that we've laid out to everybody are solid.
One of the things we've worked really hard on is trying to bring our lease operating cost down. I think it's very important. If you can see the change we made between Q1 and Q2, and probably more importantly even going back to Q3 and 4, 2011. We've driven these costs down in the $5, $6 per barrel range, largely through our work we've done on our water, both secure in water and then obviously the disposal of the water. This is our number one portion of the LOE. We hired some guy late last year. We've not got three guys involved in this part of it. We've seen a dramatic improvement. Are we going to continue to see a downward trend? We hope so, as probably it's not going to be as dramatic as you saw between the two quarters, but we think in this $5 to $6 range, it's certainly solid number to work forward on.Our capital expenditures, we went out to $585 million budget. We tried to lay out that we do have some additional cost going into mostly non-operating properties. We put 650 on this; I think it’s a fair number probably at this point. We did say on the Q2 that we were running seven rigs. Couple of weeks later we moved to an eight rig and we did this because as the rig became available on the area we wanted to drill a few wells in, we think the economics of display are very solid right now. We brought our well cost down. To give you an example, I think when we look back first half of the year, our well cost were probably run in the $11.5 million range. Again, I would focus on location of our acreage; we're in the deeper part of the basin. Typically our wells are going to run between 10,000 and 11,000 of vertical feet, may be 10.5 and 11.5 (ph). We've seen those well cost come down nearly 10 from that number already. We think today we are in that $10.5 million range. And a lot of that's been driven by the efficiency of our drilling team that has done a great job of bringing our drilling base down from kind of a mid-30s number to a low 20s number today. Read the rest of this transcript for free on seekingalpha.com