Good day and welcome to the Contango results for third quarter 2016. Today's conference is being recorded. At this time, I would like to turn the conference over to Joe Grady, Chief Financial Officer. Please go ahead, sir.

Thank you. Good morning, everyone. I'd like to welcome you to Contango's earnings call for the quarter ended September 30, 2016. On the call today are myself; Allan Keel, our President and CEO; Tommy Atkins, our Senior Vice President of Exploration; and Carl Isaac, our Senior VP of Operations. On the agenda, I will give you a brief overview of financial results, then turn it over to Allan to give you an overview of current operations and then we'll open it up for Q&A after that. As a reminder, as is typical for most companies, we'll limit our questions to those from analysts who follow our stock closely as we believe that, that is the most constructive and productive use 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 the 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 financial results, net loss for the quarter was $12.5 million or $0.55 per basic and diluted share compared to a net loss of approximately $185.7 million or $9.79 per share for the prior year quarter. Contributing to the improvement in net loss were lower operating expenses, lower DD&A, and lower impairment offset in part by the impact on revenue caused by lower production and lower commodity prices each of which we'll discuss in a minute. Adjusted EBITDAX, as we define in our release, was approximately $4.6 million for the current quarter…

Thanks, Joe and thanks for everyone being on the call today. As most of you can take note, we've made some significant steps during this last quarter and I'd like to share some thoughts relative to that. As we talked on our call in August, we're very pleased to have been successful and enter into the Permian play through our acreage position in the Southern Delaware. We did that on terms and a structure that allows us to have a very impactful investment for our shareholders. So we were able to use that investment and that deal as a catalyst to help us raise roughly $50 million in common equity that we'll use in the development of that acreage, which also keeps our debt level relatively flat. And just as Joe was mentioning a moment ago, a quick reminder on the deal structure, in terms of that acquisition, total consideration assuming all contingent success fees are payable be approximately $25 million or $5,000 an acre. It was broken down between $10 million in upfront capital, $10 million of carries over a 12-month timeframe, and $5 million in success fees. And that's if the drill results meet our expectations, we anticipate they will. So in terms of an entry fee for price per acre, we think that compares very favorably with other deals in the Southern Delaware Basin that I'm sure most of you aware of. I won't go into all those at this time, but we think we've got it at a very attractive price. We spud our first well in the Upper Wolfcamp on October 15 and given success, we expect first production by the end of the year or early January. So we will follow our normal process of reporting results on a 30-day IP basis. We expect…

[Operator Instructions] We will take question from Neal Dingmann of SunTrust. Your line is open.

Allan, you mentioned kind of on this new area, your tackling all three benches. I'm just wondering, make sure I have this right, you've got that first well that will come out in late December, January, and then you talked about additional two wells by end of the year. Just on familiar mix terms on certain, what are you targeting on those additional two wells?

We're targeting the Wolfcamp A in our wells.

On all three of these and for the three original?

Yes.

And then is that kind of going forward, will be predicated on your results, peer results, on how you go after the additional benches or will you at least for the majority of 2017 stick with kind of the tried and true with that initial Wolfcamp?

Most of our activity is going to be in the Upper Wolfcamp, but we will be evaluating the Bone Springs as we go down. So we're pretty excited to be able to give a lot of physical data and probably some rough data within the Bone Springs during the course of all that and then we'll just kind of take a look and see what each bench, what kind of properties it has and if we want to take that time to do it.

And it appears that we have no further questions at this time. I'd be happy to turn the call back over to Allan Keel.

Well, thanks everybody for joining our call today and we'll be looking forward to update you with some more news after our next quarter passes. So thanks again for your interest and we'll talk to you soon. Thanks.

This does conclude today's Contango results for third quarter 2016 conference. You may now disconnect your lines and everyone have a great day.