Encore Q1 2009 Earnings Call Transcript

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2009-04-29 17:16:17.0

Tags: Well, J.P. Morgan Chase & Co., Call Transcript, Earnings, Seeking Alpha, Encore Acquisition Co.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Joseph Allman with JPMorgan. Please state your question.

Joseph Allman - JPMorgan

Thank you and good morning everybody.

Jon Brumley

Good morning. How are you?

Joseph Allman - JPMorgan

Good. Thanks Jon. Hey, at the Almond prospect in the Bakken. So I might have missed what you said Ben, you plan of joining any more there and or -- does this well give you a lot of less encouragement about the perceptivity in that area?

Jon Brumley

Yeah. It was a dry whole, so it gives us a lot less encouragement. We have one well drill to the south that we are currently completing or about to complete. But we are more negative on this than we were prior drilling this well or prior to completing this well. But, we are pleased with the Cherry prospect getting three good wells in there.

Joseph Allman - JPMorgan

So the Cherry, if I'm not mistaken the Cherry you've got over 77,000 net acres at Almond, you've got over 65,000 net acres. I mean do you think, based on what your seeing in the second well, do you think even to the south it's not very good. So I mean as far we're concern maybe just zero out the Almond and any kind of value on the prospect?

Jon Brumley

No, I wouldn't zero it out yet. I would wait for this well to come in, and then we've had some good wells to the west of that acreage, so that could help. And then on this big of an acreage block just to zero it out on one or two wells, I don't think would be smart but I do think you shouldn't -- you should start risking it more because of these two wells. It's obviously hasn't gone up in value. It's dropped in value but it certainly not at zero.

Joseph Allman - JPMorgan

Got you. In the Bakken, just overall what's like in the first quarter you averaged just under 2800 BOE/D. Could you talk about how your sending that oil out, is it pipe -- your trucking it, your railing it and kind of what capacity you've got for all those things and just comment on this differentials and what not recently?

Jon Brumley

We have plenty of capacity. We do truck some of our oil but that simply steal trucking, its trucked to pipeline terminals and then piped out of the basin nothing where we have long-haul trucking. We don't have to rail our oil out, we're the second largest producer in the Rocky Mountains to Connecticut, Philippe. So we have a lot of relationships and we've been doing this for a long, long time and we're good at marketing oil in this area.

 

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