Dawson Geophysical F4Q07 (Qtr End 9/30/07) Earnings Call Transcript

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2007-11-14 12:02:59.0

Tags: Dawson Geophysical Co.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Collin Gerry with Raymond James.

Collin Gerry - Raymond James

Hi, good morning.

Steve Jumper

Good morning Collin.

Collin Gerry - Raymond James

Great quarter, again. I wanted to home in on some of the issues that you brought up, one being the geographic expansion that was kind of talked about over the last few quarters. As you look forward, do you see that some of these newer markets, some of the ones that you mentioned, are those going to continue to take maybe even a bigger slice of the revenue pie, as opposed to kind of your historic West Texas market?

Kind of walk us through how you see the geographic mix playing out over the next, call it, 12 to 18 months.

Steve Jumper

Well, interestingly enough, in the last quarter or so going back, we have actually had more activity in West Texas than we have had in recent years. We have operated anywhere from four to six crews in the West Texas, Eastern New Mexico region on and off for the last quarter or so. The Appalachian Basin is an area that continues to show a lot of promise.

We believe that we'll have expanded operations in the Appalachian Basin sometime in '08. It's a difficult operating environment. It is difficult in terms of access and using dynamite as an energy source, but we are very optimistic about the prospects in the Appalachian Basin.

The Rocky Mountain region, all the way up, including the North Dakota region, appears to be very active. And we think we will continue to see increased activity in the Rockies. We're still think, we will be very active in Eastern New Mexico and into Arkansas. Another area that appears to be having quite a bit of interest and potential growth and market is South Texas.

We have seen quite a few interest in more South Texas work. The Barnett Shale region continues to or the Barnett Shale, the Fort Worth Basin, I should say, continues to be very active. We are seeing some interest in the Southeast part of the U.S.

So that is a long-winded way to say that even though we have a third of our resources or so in the West Texas, Eastern New Mexico area, we think we will continue to expand. We will continue our operations in these areas across the country, with probably increased activity in the Rockies and the Appalachian Basin, and if I had to pick two regions that I thought had the near-term growth potential for us.

 

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