Energen Corp EGN
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/29/2013

Operator: Good morning, ladies and gentlemen and thank you for waiting. Welcome to the Energen First Quarter Earnings Conference Call. All lines have been placed on listen-only mode and the floor will be open for your questions and comments following the presentation.

Without further ado, it is my pleasure to turn the floor over to your host Ms. Julie Ryland. Ms. Ryland, the floor is yours.

Julie S. Ryland - VP, IR: Thank you, Wes. This is Julie Ryland. Good morning. Today's conference call is being held in conjunction with Energen Corporation's announcement this morning of the results of operations of the three months ended March 31, 2013.

Our comments today will include statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor Provision Act of the Private Securities Litigation Reform Act of 1995. All statements based on future expectations are forward-looking statements that are dependent on certain events, risks and uncertainties that may be outside the Company's control and could cause actual results to differ materially from those anticipated. Please refer to the Company's periodic reports filed with the SEC for a more complete discussion of the risks and uncertainties that could affect the future results of Energen and its subsidiaries.

At this time, I'll turn the call over to Energen's Chairman and Chief Executive Officer, James McManus.

James T. McManus, II - Chairman and CEO: Good morning to you all. The first three months of 2013 were both encouraging and challenging. The results of the 3rd Bone Spring and Wolfberry we tested in the first quarter were excellent. The non- 3rd Bone Spring wells we tested had an average initial stabilized rate of 1,230 BOE per day, 74% of which was oil. And the 30 day average production rate of five wells tested was 625 BOE per day, 71% oil.

In addition two of our 3rd Bone Spring wells were particularly impressive with an average initial stabilized rate close to 2,000 BOE per day. Our Wolfberry have responded very well to our recent switch to Slick Water-based stimulations.

We tested 42 gross wells and an average initial stabilized rate of 123 BOE per day 75% oil and over the first 30 days the wells averaged 109 BOE per day again 75% oil. This is well above our typical type curve.

Turning next to our horizontal Wolfcamp exploratory programs, we are very excited about assessing the potential of the Wolfcamp shale in the Delaware and Midland basins. We believe that our previous success in either one of these basins held significant positive implications for Energen. Given our excellent acreage position in both areas. We continue to drill complete and test Wolfcamp shale wells in the Delaware basin and are preparing to spud our first Wolfcamp wells in the Midland basin this week. In the Delaware basin the four wells remaining in the 2012 drilling program are in various stages of completion or testing.

In the first well in our 2013 program is awaiting completion. Our Delaware Wolfcamp program is designed to test a variety of locations in the upper and middle intervals of the Wolfcamp formation.

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