International Association For Energy Economics :

When an event occurred, which caused rates to fall immediately. We now have wells that have tested oil rates in excess of 1,000 barrels per day. In addition, we have recently reworked several of the previously drilled and producing TMS wells we acquired last summer. In addition, our preliminary CapEx budget for 2014 is back-end weighted, and we will remain very cautious and prudent with our capital plan, as we always do, based on results and success across our portfolio. We have staggered our rig contracts to give us flexibility on timing and capabilities across our portfolio of opportunities. However, our near-term focus remains on building a large, balanced portfolio of both oil and natural gas reserves. Even after a decade has passed, however, not much changed in this area. However, it appears we may be getting some contribution from the lateral at the reported rate, as 500 barrels of oil per day from 500 feet is too prolific versus past results and expectations. We are unable to get down to the obstruction in the frac plug in the lateral at approximately 500 feet, and we think it is likely due to the tight spot in the casing. If gravity segregation is strong, the incremental loss of oil recovery due to “zero vaporization” is more than offset by exaggerated density differences caused by erroneous gas densities.

As is our standard practice, we include a unique chemical tracer in each stage of the well so that we can analyze the fluid recovery and get an indication of which stage or stages are contributing during the flowback. By drilling through the upper portion of the TMS and rubblized section at a steeper angle, as well as the improved bit selection and mud properties, we have made excellent progress on the drilling side and eliminating wellbore instability. The first unique challenge we experienced relative to the TMS drilling operations was maintaining wellbore stability in the lateral section of the horizontal wells. 300 million preliminary estimate in the TMS is subject to continued success, and predicated on drilling or participating in 32 gross, 23 net wells for the year, which would have us reaching 5 rigs by the end of the year. During the past 2 years, we and our partners in the play have made tremendous progress in de-risking and delineating the TMS and demonstrating, we believe, the tremendous potential of the play.

By looking at past trends and how this relates to future predictions, it is easier to decide which moves to make in the market. Natural gas usage in Michigan has actually DECLINED over the past 40 years according to US Energy Information Administration. Reserves were 73% natural gas, 27% oil and NGLs and 39% developed. It was also produced by natural processes of swamps, landfills and manure dumps. Of our operated wells in which we now have some history, our Crosby has produced 160,000 barrels equivalent in approximately 11 months. Production for the quarter totaled 7.4 Bcf equivalent, or an average of approximately 81 million cubic feet equivalent per day, with oil comprising 29% of the total and 67% of revenues. I would now like to turn to the Tuscaloosa Marine Shale play, as Rob and Jan will provide more details on the fourth quarter and full year 2013 financial report in just a minute. The House and Senate voted earlier this year to end U.S.

There are lots of tips floating in the market but you need to do the research on your own before taking the risk and then end up losing your money. As a result, the decision has been made to drill out the plugs in an effort to resolve this issue, and we are currently drilling out plugs in the well. 7 million, and where we ultimately figured out the optimum drilling and completion methods, and got to repeatable consistent results, we feel the same will hold true over time in the TMS. We expect to minimize and hopefully eliminate the remaining drilling and completion issues prior to contracting for the fourth and fifth rigs. 60 million, which is obviously at a much reduced run rate than our preliminary 2014 budget, as we had back-end loaded at the budget to allow for developing best practices prior to running at full speed.

We reported year-end reserves of 452.2 Bcf equivalent, a 36% increase over the prior year period. Till the year 1947 oil wells were mainly drilled on land but the first offshore oil well was drilled off the Gulf of Mexico which became the first offshore oil platform. 1 well, which is an upper target well, and we have subsequently used those same plugs on the Weyerhaeuser 51, which is a lower target well. And we believe we’ll generate EURs within a range of tight curves, which we have published for you, over a broad area, and similar performance from wells almost 40 miles apart. Thank you, Daniel. Good morning, everyone. Investment in oil and gas exploration companies can surely fetch good returns. Big budgets and existing tech talent are necessary to implement robust AI initiatives (particularly for complex robotics programs), and few companies on earth have pockets as deep as the big oil giants.