Good day, and welcome to the Contango Oil & Gas Results for First Quarter 2015 Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Joe Grady. Please go ahead, sir.

Thank you, [Adrienne]. First of all I’d like to welcome everyone to Contango’s quarterly earnings call for the quarter ending March 31, 2015. On the call today are myself, Allan Keel, our President and CEO; Tommy Atkins, our Senior VP of Exploration; and joining shortly will be Steve Mengle, our Senior VP of Engineering; and Carl Isaac, our Senior VP of Operations. The agenda for today is that I'll give a brief review of financial results, Allen Keel will then give a brief overview of current operations and then we'll open it up for Q&A, and on the Q&A as is typical for Contango as well as for mostly companies will limit our questions to those from analysts that follow our stock closely. As we believe that, that most constructive and productive years of everyone's time. Before we begin, I want to remind everyone that the earnings press release and the related discussion this morning may contain forward-looking statements as defined by the Securities and Exchange Commission, which may include comments and assumptions concerning Contango’s strategic plans, expectations and objectives for future operations. Such statements are based on assumptions we believe to be appropriate under circumstances, however, those statements are just estimates, are not guarantees of future performance or results and therefore should be considered in that context. Starting with the summary of financial results, we reported a net loss 18.6 million for the quarter or $0.98 per basic and diluted share, compared to a net loss of 10.2 million, or $0.53 per basic and diluted share, for the prior year quarter. Included in the current quarter where explorations expenses of 4.5 million and non-cash pretax impairment charges of 2.3 million while the prior year quarter included 41.8 million and pretax charges related to a dry hole and Ship Shoal…

Thanks Joe and good morning everyone. Thanks for being with us this morning. I like to share a few highlights and some information that we provided in our release today and provide a few comments as well. We did have a busy first quarter although the first of our efforts didn’t necessarily show up in our results for the first quarter due to some timing issues. We completed six Woodbine wells drilled on pads over the last two quarter. We expanded and needed gas takeaway capacity and got the wells online but we saw limited production benefit from those wells in the quarter, as the first three wells came on during the quarter on a restricted basis while the other three didn’t commenced production until April. We have seen cost improvement there with wells being drilled and completed at $5 million or less per well so we have seen that benefit in our operations. Moving to Wyoming, we drilled our first muddy well in our North Cheyenne prospect but we’re delayed in fracking that well due to some operational issues and in our Mowry well we had to delay fracking that until just recently and we’ll talk more about that just a few moments due to weather conditions out there. In our Elm Hill play at Fayette and Gonzalez East Texas we continued our testing of multiple formations to position us to develop a going forward strategy in the near future. As Joe mentioned, we’re on plan on our capital program for the year from a timing and total spend perspective and which is designed to maintain our conservative and strong financial condition. If prices improve and/or service costs continue to decline we’re positioned to increase our drilling program in a meaningful way. We continue to look for other opportunities…

Thank you. [Operator Instructions], we will go first to Kyle Rhodes at RBC Capital Markets.

I was hoping you guys could talk a little bit about the oil cuts of your latest ground at Chalktown well and how those compared to prior results? And then maybe the oil cut on the current production number of 102 million a day that you guys gave as well?

We're still early in the flow back and these things take a little while to come back, but we're 50% of oil and liquids I think at the moments is what we're seeing. So GOR is a little than we or similar actually to first when we drilled out there.

And just to be clear that's in the [Vick Trust] pad?

Yes and the Barrs are lower -- is lower GOR, always has been and we're early in the flow back, so it's verdicts still little bit out on it, but it looks like it's going to be consistent with the original Barr well as well which is probably a GOR closer to -- what a 1,000 to 1,500 which is going to be what closer to 90%; I think, 80% to 90%.

Okay great that's helpful and then on the current production number, any kind of rough ballpark on the oil cut there?

The current production as I would say it's probably similar to what we've experienced in the quarter.

Okay and then I guess you've mentioned that if prices improved, you could increase activity in the meaningful way given that you guys have layered on hedges for a significant portion of our your oil production with $65 fillings, shall we view this as more of a 2016 increase in activity or is that actually reconcile that?

Well, I would say to the extent that we see what we like in some well we're doing today, prices continue to show strength and cost continue to come down. It's possible we could reengage in the later part of the year. We don’t currently have plans to do that but that's what we've talked about in the past it's certain things, certain positive things all come past in the quarter than we might gear up again. Otherwise we'll just reviewing and evaluating the results on the wells if we currently have in our plan.

Okay and then I guess just on the M&A market, any update you guys you guys can provide there just given the flattening of the forward strip if you've seen the bid ask spread narrower at all or just maybe an update on what you guys are seeing out there?

I'd say that you had things that we've looked at, people -- there is obviously with plenty of capital out there about looking for opportunities as well as to financing to extend people's runway, so they don't have to face some of the issues that they might have to fact otherwise in the lower price environment. So we would say it's a pretty challenging environment to try to get deals done in, but we're actively -- continue to be active and looking at opportunities.

And we'll go next to Neal Dingmann of SunTrust.

Hi, guys, good morning, this is [Will] for Neal. I guess first of in the Mowry and the Muddy what would you all need to see or what do you looking for to have confidence to allocate additional capital there?

Well, we like to see a meaningful amount of all what that is the expense on the price point, but I think we would like to a few hundred barrels of liquids out of those formation to give us encouragement and then just what kind of decline that might have, what the pressures might, so I would say those are the primary factors.

Okay thanks and then Joe for you hedging, you all added some stuff in the after first quarter recently here in April, would you continue to add where oil is now and maybe look out in the 16?

Well, I would say that we're not ready to ’16 at this point, but as far as the remainder of the year we've got a substantial portion of the non-Gulf of Mexico production hedged to the extent we still have some room, we might put some more on, but it wouldn't be a meaningful number. We don’t hedge the Gulf of Mexico volumes because the uncertainty associated with hurricanes and shut-in’s that come with that. And the way we look at it is that we really consider the hurricane season to that July time frame but we’ve refrained from hedging anything through December because the expectation is if we did have a problem in July or August it would probably extend through the latter months of the year as well.

And we’ll go next to Patrick Rigamer at Seaport Global Securities.

I guess to follow up on some earlier questions with regard to potential for increased activity later this year, is there a specific price point or commodity price that you’re targeting to maybe add some dollars back into the budget?

I think I would say it’s more of a functions of the combination of price plus results on what we’re drilling and then thirdly cost -- service cost and what we might see then coming down to in the later part of the year. So the short term there is no concrete answer to that it would be a combination of things.

And if -- I guess I don’t know if you can answer this one. But if we do get to a point where you’re comfortable increasing activity do you think its more development dollars that you add to the budget or would you kind of continue with some of these exploration efforts?

No I would say the combination of both, probably more development oriented, but we would also continue to try to further delineate the plays that we’re pursuing right now and to the extent that it’s [warranted] based on early results.

And then I guess on the M&A front, you kind of got through the first quarter which was the bulk of the spending and we’re passed the borrowing base redetermination. So I guess you have a little bit better visibility on kind of free cash flow and what your liquidity position is. What sort of I guess can you frame the size of deals that you would be looking to do or how larger the deal would you be comfortable looking at this point or any comments there?

No, we’re looking at things kind of all across the board. It all depends on the area where the assets are located, the profile of the company, the debt levels a number of different things strategic potential new areas from a strategic standpoint as well as in our current areas of operation.

And then is there a preference for PDP or more exploration weighted or is it just entirely opportunity driven?

Well, I would say it’s opportunity driven but normally we would like to have some production but our biggest focus is trying to continue to build our inventory of things to do going forward.

And we’ll go next Michael Glick at Johnson Rice.

Just a question on Elm Hill you mentioned you were encouraged with the couple of zones out there, couple of the horizontals thus far. Maybe you just expand on and what you seen and what you plan to do next?

This is Allan, we’re going to continue testing the wells that we’ve drilled, we’re working with our partner on our strategy going forward on exactly what formations we’re going to continue to test and we’re on our acreage we’re going to drill so we’re developing that strategy right now.

And can you say what zones have been encouraging thus far?

Well, they all been encouraging in different forms so we’ve tested the [Navero], we’ve tested the [Budem] and we’ve tested the Austin Chalk; so they’ve all been pretty encouraging thus far. We haven’t had a formation not test all of them yet.

And then maybe for Joe just how should we think about working capital over the next few quarters, where should that trend?

Well, you know we have a deficit which is not unusual for a small company with an active program, but since activity level will be a lot lower going forward that will decline as we pay venders for the stuff that was done -- that was done in first quarter. So that is we're trying to describe in the [queue] while our debt level is up now relative to where it was a year end and part of that because is because we did have about $20 million reduction in the invested and working capital during the quarter and that will continue to be the case through the end of the year. So our estimate at this point is debt level probably similar to where it is now, but the deficit within the work capital will continue to decline.

And that does conclude today's question-and-answer session. At this time, I will turn the conference back over to management for any closing remarks.

That's all we had today and thanks for your attendance and interest and talk to you next time. Thank you.