Friday, October 7, 2011

CFO Blog: 10-7-11


All,

It's been quite some time since my last post. We've been busy in the intervening months streamlining and improving our field operations as well as preparing for another leg of growth in our E&P business. There's a lot to discuss, so let's jump right in.

We have completed and tested the Leonard #2 and #3 wells with good results. The two wells tested at a combined 14 barrels of oil per day, which is well above our targeted average for the area. The economics on these wells are excellent, mainly because of the low drilling and production costs. We intend to continue to deploy capital on this program which should significantly improve our cash flow.
   
As I mentioned above, we've made improvements to our field operations, primarily in the area of personnel. We've upgraded the quality of the team and reduced headcount. Additionally, we have tweaked our production methods which has improved lease productivity, especially for the more mature wells. This consumed quite a bit of time over the summer, but I am very happy with our new field team and have confidence that we will continue to see measurable improvements in the coming weeks and months.

Some of you may be wondering why I haven't been posting recently. Frankly, I wasn't certain anyone was listening. Of course we continued our SEC reporting, but I wasn't sure the color that I try to provide through the blog was adding value for anyone. After hearing from some of you and reading some of the feedback on various sites, I can see that I was wrong. So from here on out I'll provide regular updates through this blog. We'll continue to do press releases for big items, but if you want to keep up with our progress in more detail then check back here regularly.

Speaking of communication, you may have noticed from our filings that we've retained RKM Capital to increase awareness of our Company and the progress we're making. You can find their latest promotional materials here

I hope this has been helpful. As I mentioned above, we're moving into a new growth phase. Keep an eye out for updates and make sure to check back here on a regular basis. Have a good weekend and Roll Tide!   

Best,

-Shannon

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