Good day ladies and gentlemen and welcome to the Halcón Resources second quarter earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call maybe recorded. I would now like to introduce your host for today's conference, Floyd Wilson, Chairman and Chief Executive Officer. Sir you may begin.

Good morning and thanks all for joining. This conference may certain forward-looking statements intended to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. For a detailed description of our disclaimer see our earnings release issued this morning and posted to our website. With me on the call today is our CFO Mark Mize and our President Steve Herod. This quarter represents the final RAM Energy only report and marks the beginning of our aggressive growth in value reporting. Welcome to Halcón Resources. Since February 8th we have made significant progress towards our goal of building an oil weighted energy company with a substantial drilling inventory. The heavylifting with respect to acquiring the acreage necessary to achieve our goals is complete. We are now transitioning from lease acquisition to drilling and development. In fact, we have nearly 10 rigs running today. We have accumulated nearly 1 million acres of highly perspective land, all identified through our research and experience. And this platform is a great one; by the way on a proforma basis, average daily net production for the second quarter was nearly 15,000 barrel of oil equivalent per day. We have eight operated drilling rigs running in our oily resource plays and we will add several more rigs throughout the year approaching 15 rigs by the end of the year. We expect to drill over 60 wells during the second half of 2012. All-in-all, a great start maybe even better and that today we are announcing two Wildcat discoveries. In East Texas our Woodbine and our Woodbine Eagle Ford area are exploratory well, the Covington 1H in Grimes County found productive intervals in both the Woodbine and Eagle Ford formations. We are currently drilling a horizontal lateral in this one in the…

Thanks Floyd (inaudible) completed a private offering of senior secured bonds in the amount of $750 million with a coupon of 9.75 quarters. There was strong demand for the pay in the deal up size from the original offering of $500 million. Proceeds from the bond initially close in the (inaudible) yesterday and use of the fund the cash portion of the GeoResources acquisition as well as a portion of the East Texas Woodbine deal. In addition to the bond financing, we amended our senior secured line of credit concurrent with closing of the GeoResources acquisition. The borrowing base was increased from $225 million to $525 million and we can now hedge up to 85% of projected production from total [crude] reserves. As a result of these financing activities in considering the fuel resources and Woodbine acquisitions, we ended the quarter with pro forma liquidity of just over $600 million. Moving on to the financial results, as Floyd has already pointed out, this the last quarter that will be largely driven by standalone legacy RAM operations beginning in Q3. Our production of financial results will include contributions from Geo and the East Texas acquisitions in addition to drilling activities in our new place. Production for the quarter came in at just over 3,900 barrel equivalent a day for a total of 356,000 barrels but more importantly as Floyd touched on, if you take a pro forma look at the company, it was 15,000 barrels equivalent a day. As mentioned in the first quarter earnings call, [LOE] and normalize G&A continue to run above previously published annual guidance that we expect this metrics to be within our guidance range for the full-year ended 2012. This (inaudible) improvement in LOE and G&A over the remainder of the year will be driven by…

Thanks Mark. I guess I am so excited thinking about the growth we've had down the Eagle Ford play, a minute ago I reported 2,700 barrels a day, that number is correct, that's gross production. The net production from that property to us is 1,100 barrels of oil equivalent per day, reminds you that property was producing less than 200 barrels a day in the fourth quarter of 2011. So it's really going great down there. As we look forward the next several quarters let me remind you that we have guided for strong production increases and the dramatically improving cost structure. We see no reason to change those aggressive projections at this time and feel quite comfortable within. We've built a formidable land position in just a few months and we now have begun to develop these holdings. Our balance sheet is in great shape and we have no current need or plan to raise any additional equity. We are doing extremely well operationally and position for significant growth. We have built and sold companies before and intend to have proved on those past successes. Operator we are ready for questions now if there are any?

Thank you. (Operator Instructions) Our first question comes from Leo Mariani of RBC Capital Markets. Your line is now open.

Hey guys just looking for a little bit more color on the Navarro/Midway formations that you guys are targeting in Austin and in Colorado Counties just anymore kind of detail on the geologic concept there and any detail on potentially historical production in that area as well will be great?

Leo, this is one of the first projects that we started working on when we began Halcón there is no Navarro production nearby there is some quite a bit in East Texas that is very similar to what you saw in the (inaudible) in areas but this is a pure Wildcat discovery, there is Midway production in the area, a few miles away but nothing near where we are. So our expectations are quite high here, this is a deep over pressured very rich pay zone in both of these sections and we expect big rates out of this. We are just now completing a five stage frac in the Navarro section and we will test that and I am basically assuming that it will be too strong to go the Midway at this time and we will have some additional news on the actual production rate within the next few days.

Is that something you guys would announce with another update prior to the next quarter's earnings; I know you said there was bunch of potential well resolved to an update on some of the A&D activity coming that something we should look forward in the near future?

I don’t think I said anything about the A&D activity, but on this drilling I think we will be in a position to announce prior to the next quarter release some of these results just because we are getting first, a lot of calls about it and second we have a lot of people out watching these well sites and trying to figure out what we are getting. So we'll just make those announcements ourselves than have others do it.

Obviously, you guys are involved in a ton of different plays at this point. If you guys had to think about sort of a top three, will that be something you guys could enlighten us with?

Well we certainly have high regard for everything that we are doing. At this time, you know the data points that are strongest involve the Woodbine and Eagle Ford Play in East Texas. This what we call our catch springs project which is this Navarro Midway is of course high on the list right now and the Utica and Point Pleasant, every single data point that the industry has been coming out with over the last several months has done nothing but anchor our own analysis and provide us with a high level of confidence. So while all of our other projects are extremely interesting to us, including a couple of undisclosed (inaudible) at this time, of course those three would be top of the list. The Mississippi Lime is just a little too early, but we've seen some great beginning there, indicative of other operator results in the area. So we’re not unhappy with anything that we're doing.

That’s great. And obviously you guys talked about no changes to your robust production outlook, the rest of this year. I assume that’s also the same for 2013 as well?

Yeah, we see no change at this time. I will say that we'll update to you as soon as we feel the need to, but right now we view those as conservative while they are strong – we view those as conservative achievable targets.

Thank you. Our next question comes from (inaudible) of KRL Group. Your line is now open.

I appreciate the update on your leasehold acquisition. You know, kind of looking out to the Utica and Point Pleasant. Can you comment on whether your leasing all rights there, been hearing of some other operators chasing steps of the play. Just curious what you are thinking there?

In a general sense, across our entire acreage block, we hold all rights of the needs of (inaudible) which is a shallow productive zone that’s historically been drilled for almost a 100 years up there. Hopefully that would answer your question.

Sure, that helps. And then as far as kind of the drilling plan for this year, you are going to be targeting the Utica, the Point Pleasant up there?

We are targeting the Utica, the Point Pleasant we will be looking at the [Rhine] Street of course and certain areas and anything else that would come up, but the area that we are leasing in is most highly perspective for the Utica Point Pleasant.

Our next question comes from Rhys Williams of Johnson Rice.

Hey guys it is Ron Mills. A question for you on Midway Navarro, is this a more conventional play, is that why you are shooting 3-D seismic or do you think this is a play that exhibits more resource play characteristics just trying to think about how you think about the geologic study here?

Well, Rhys, it's conventional and definitely in the Midway and the midway these are sands. The Navarro is conventional at this time, but you might remember that some of the most heady successes in South Texas in the (inaudible) have been in these areas where they had drilled vertically and are now drilling horizontally. So the Navarro is a more evenly distributed section in this area, so it's certainly will be something we will be looking at. At this time, the section has thickened up. As I said we have a five stage frac just finishing up in the Navarro over about, well somewhat less than 2000 feet. So it's quite thick enough to do a really interesting vertical multi-stage hydraulically fracked completion. The Midway has a similar number of sections in it and so this first group of activities will be vertical, but we are certainly going to be looking at the ability to access these zones horizontally. We think that the -- we are shooting the 3-D seismic to delineate how much of leasing we really intend to do and it’s certainly not a structural play, but we can certainly track the sand in the Navarro section with 3-D seismic better than we can with 2D.

Is the Navarro thick enough, it sounds today more like a Wolfberry type play in the Permian although the Wolfcamp people are starting to talk about multiple benches and going horizontally. Is the Navarro, it sounds thick enough, does it have similar of the characteristics where you may have separate benches that you would have target in individual horizontals if it became a horizontal play?

That's certainly a possibility. I just have to point out the tremendous difference between where we are and at these depths relative to the Permian, this is an over pressured reservoir. We have done some coring and it has great porosity and high TOCs and all of this. So it’s an unknown about drilling a horizontal well at this depth for us and at these pressures. We are stepping our way into a wildcat discovery like this fairly conservatively because as I said it’s an over pressured reservoir that has got some strong promise. I don’t think I would liken it to the Wolfcamp out in the Permian just yet.

Okay. And can you just -- I think I got all these. You were talking about I think the Woodbine going to 5 rigs by year end. The Williston at three rigs, Mississippi and I assume you are going to complete the wells before you determine what you are doing there. I know you are going to have one rig in the TMS and one rig in the (inaudible) and I guess one rig in the Midway Navarro, is that kind of the rig count as you see it today to allow yourself to drill those 60 wells in the second half?

We would probably have an additional rig in the Tuscaloosa Marine Shale before year end. I don’t know that we will have an additional rig in this Midway Navarro just because we have done that seismic work. We would have a couple of rigs may be built into as many as three and the Utica Point Pleasant area. So I think our current and then of course if you add the rigs that we are running in the Eagle Ford and the Bakken area are 8 rig count would grow to 13, 14 or thereabouts pretty soon here.

(Operator Instructions)

Operator I think we have taken the questions and we appreciate everybody's interest this morning. We will end the call now and feel free to give us a call if you think of something that wasn't covered on the call. Thank you.