Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from [Tray Sabian] – Sidoti & Company.
[Tray Sabian] – Sidoti & Company
I have a couple of questions on your backlog and your field crews. Can you talk about the composition of your backlog, where the new order bookings are coming from? I estimate you have about $9 million of new orders, is that correct?
Wayne A. Whitener
That’s correct.
[Tray Sabian] – Sidoti & Company
Where is that coming from?
Wayne A. Whitener
It’s coming from our core base of midsize E&P companies all through Midcontinent Gulf Coast.
[Tray Sabian] – Sidoti & Company
Do you think that’s a sustainable level of new orders from what you are seeing?
Wayne A. Whitener
Well, that is our hope. We’re seeing some pick up in the industry from where we saw in the first quarter. Like I said, price pressuring is very intense right now so we’re going to have to kind of see how that plays out.
[Tray Sabian] – Sidoti & Company
Are you seeing any contract cancellations?
Wayne A. Whitener
No, not at this time, no.
[Tray Sabian] – Sidoti & Company
Where are your crews working? Are they basically in the Midcontinent?
Wayne A. Whitener
Yes, Midcontinent, Gulf Coast, some West Texas, pretty much a lot of our core area.
[Tray Sabian] – Sidoti & Company
Are they working more on turnkey contracts or what percentage would that be?
Wayne A. Whitener
100% turnkey.
[Tray Sabian] – Sidoti & Company
Are you seeing the same level of credit pressure on your clients now, or has that abated?
Wayne A. Whitener
I think money available to the E&P companies is still very, very tight. Hopefully, we’ll see later on this year maybe some of that money free up. But, things are still relatively tight for money investment in the oil and gas business at this time.
[Tray Sabian] – Sidoti & Company
Did you see any rise on inquiries following the rise of oil prices in the first half of the year?
Wayne A. Whitener
We have seen a rise in inquiry in oil plays, I will say that.
[Tray Sabian] – Sidoti & Company
Do you expect once drilling activity for natural gas picks up in North America, are you going to be trailing that in terms of the work you’ll be doing or will you be preceding a pickup in drilling activities, any ideas?
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