Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). And our first question comes from the line of Ron Mills of Johnson Rice. Please go ahead sir. Your line is open.
Ronald Mills – Johnson Rice & Company
Good morning, Fred and Bob. Really just to follow-up on a couple of clarification and then ask a question. You talked about $10 million Fred from a CapEx standpoint this year primarily for P&A work?
Fred L. Callon
Right.
Ronald Mills – Johnson Rice & Company
Is that number correct and is that exclusive of your capitalized cost?
Fred L. Callon
Yes it is. I’m sorry that's, you are right that's miscellaneous P&A with several properties, therefore we had just some scheduled P&A. So, yes that is just strictly P&A.
Ronald Mills – Johnson Rice & Company
Okay. And from a capitalized standpoint, are your capitalized cost, should they still remain in that $15 million to $20 million range or will those come down..
Fred L. Callon
I think capitalized interest and G&A should be around 15, yeah 15.
Ronald Mills – Johnson Rice & Company
Okay. And then in terms of, since the producing property acquisitions is the primary focus at least that's what it seems like right now, how is that market looking to you all right now, how are conversations going, how is the deal flow just get a sense as to what you all are seeing to be pursuant in that?
Fred L. Callon
Sure. Right. As I mentioned, we've been looking kind of at the market, for quite some time actually almost a year then, it quite frankly started last spring as we, at the time, we were anticipating and tried to be in a line in looking at the cash flow and where we are going to direct that cash flow and we are starting to looking at some more onshore opportunities and so we've been looking at various opportunities for total different climate now as to issues back then, when things were so heated up, but in recent times I think we are certainly seeing opportunities I think it's, the deal flow is I don't say its starting to pick up, it has been somewhat slow, but again for us, and we are a small company, so there are plenty of opportunities for us to be evaluating looking at, as you might expect and this has happened every time we go through one of these cycles, it just takes some time for buyers and sellers to figure out where the clearing price is on some of these properties, and that's the reason I think it's important to be patient. Obviously, we would like to close on an acquisition sooner rather then later, but I think it's just it's very important to have the patience because I mean I think there are some opportunities out there, and unfortunately it just takes a little time for sellers to basically kind of group, kind of where the market is and in fact frankly the buyers are sellers really don’t know where that clearing price is, and I think we are starting to see that I guess come together I think we will literally in the next probably 30, 60 days even, see more and more and we are certainly seeing an increase in properties out there and I’m sure that will continue. And so I think there are going to be a number of opportunities and its just, it’s the issues like a year or two ago, acquisitions you were paying for probables and maybe possible sometime and today, not only, you're not paying for that, but we are seeing opportunities where you may not have to pay for, some of the projects as well so. The whole market is shifting and so we think if we are patient and we’re careful and do our homework that we are going to be able find some opportunities this year that allow us to build some value for the next coming years.
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