Good day everyone, and welcome to the Contango's Results for the Third Quarter 2015 Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Joe Grady, Senior Vice President and Chief Financial Officer. Please go ahead, sir.

Thank you, Vicky. I'd like to welcome everyone to Contango's earnings call for the quarter ended September 30. On the call today are myself; Allan Keel, our President and CEO; Steve Mengle, our Senior VP of Engineering; Tommy Atkins, our Senior VP of Exploration; and Carl Isaac, our Senior VP of Operations. I’ll give a brief overview of the financial results, I’ll then turn it over to Allan for an overview of current operations and then we’ll follow that with the Q&A session. Just as a reminder, as it is typical for most companies, we will limit questions to those from analysts who follow our stock as we believe that is the most constructive and productive use of everyone's time. But before we begin, I want to remind everyone that the earnings 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. Summarizing the financial results for the quarter, we reported a net loss of $185.7 million for the quarter or $9.79 per basic diluted share compared to net income of $3.7 million or $0.19 per share for the prior year quarter. Included in this quarter’s results, was pre-tax, non-cash impairment charge of approximately $226 million as required by GAAP and as a result of the decrease and estimated risks discounted due to cash flows from certain of our properties. Relative to the balance sheet carrying value for those properties, with the decrease in those future cash flows resulted…

Thanks Joe, and good morning to everyone and thank you for being with us today. I'd like to give brief update on our operations during the quarter, a quarter that continued to be a challenge for majority in the industry. Due to the low price environment and the uncertainty for near-term improvement, we stayed focused on and committed to our strategy and goals that we set in the beginning of the year and [indiscernible], number 1, maintain our strong and conservative balance sheet, limit our CapEx, cash flow and only strategic projects reduced costs and maintain the flexibility go through capitalizing on acquisition opportunities that come up in the environment like this. Concerning our financial conditions, we now forecast our total CapEx program for the year will be around $58 million to $60 million as Joe mentioned earlier, which is expected to be less than our forecasted discretionary cash flow for the year. Well our debt at the end of the quarter is higher than the beginning of the year will simultaneously reduce our working capital debts that similar manner. So our total obligations remain fairly constant. As Joe mentioned, our year-end plan for profile is expected to be as good or better than as it is today. Concerning our drilling program, during the quarter we continued to focus on strategic projects that would enhance our portfolio and position us to quickly increase capital activity when process improve and our cost decline. Specifically, we focused primarily on our unproven North Cheyenne and Muddy Sandstone plan in Wyoming, in a number of formation in our new Elm Hill play Fayette and Gonzalez County East Texas and testing and exploratory prospect of [indiscernible] in Natrona County, Wyoming. We believe that the success that anyone of these three place could be very meaningful…

[Operator Instructions] And we will take our first question today from Neal Dingmann with SunTrust. Please go ahead.

Good morning guys. So Allan just a quick question on [indiscernible] after these next two wells, you have this three wells on what let’s say there is -- for that first one will that give you a confidence in most of that 35000 net that you all have or you are still in the area -- you have to do in there?

Yes we are still, yes we are still delineating the play but we think that after these first three wells will have pretty good geographical area de-risked but we want a little bit more that but yes I think the majority of our acreage we feel very confident about the potential there. And the big thing there for us is to continue to find the way to drive down the cost of drilling complete and our operations team did a very outstanding job driving that cost down further from our first well to the second well to the third well. And I would say that is going to be a key factor for us. We think the resource is there. We got to find the way to get out economically.

Okay that’s kind of -- here is my next question. Is it more when you and Joe think about obviously your plan I think you are doing the right thing in cutting back in the environment. Is it more just on well economics you are looking rather than a set price obviously it depends on what cost do and what other factors on these wells in order to step up your program is it just a sort of hurdle rates that you and Joe established to decide when you want to sort of excel that drilling or given that you are looking more at acquisitions is there, I guess, it's just a hurdle rate that you are looking at before deciding organically that increase?

Yes, I think it's definitely a hurdle rate that's certainly number one for us. I think that in this environment I mean you got to weigh what the different alternatives are, I mean I think that there are we believe there is opportunities out there to whether it’s asset or corporate type activity we think that does exist. We are focused on that. We think size and scale are still extremely important but also for us needing more inventory in the price environment that we are in so we are equally focused on that. So I would say it is greater return driven and so therefore we are trying to drive down our cost and at the same time try to be as efficient as we can. We are still in the early stages. We are still learning as we go out there and so far we are pleased with what we have seen.

Okay then lastly just offshore things -- recompletes or anything that you are looking at early next year how should we look at sort of that production?

No. we did a re-completion earlier this year and it worked out well. But there is really not much left to do there it’s all PDP, so we are just hanging in there with that and we are again pleased with the decline that we have so far out there. So --

Okay. Thank you.

Yes thanks Neal.

And the next question comes from Don Chris with Johnson Rice.

Good morning guys. Just starting in the Muddy, can you talk about the differences in pumps that you did on the [indiscernible] well and how that 140 BOE a day that has produced currently translates to your curve?

I will turn that over to Carl in terms of that pumps that we used and then Tommy and Steve can comment regarding our – we are still very early in the process in terms of trying to even determine what type curve would be so that's just very early stage but Carl why don’t you.

Don could you go across through the file first.

Yes, I am sorry I was just curious I know you spotted on jet pump and I thought you went to a sort of pump on that. I was just curious as to what you learned the process?

Well actually on the first well we started out with the gas lift system and [indiscernible] transitioned to the pump and then we transitioned to a rod pump after that and starting out on the second well we will commence with the rod pump as soon as the well is kind of at point where requires artificial lift. So I think lessons learned which I think is what your question was guide toward was based on the [GORs] that we have in this field rod pump is much efficient way starting out based on our experience with the jet pumps and the gas lift system.

Yes go ahead. I am sorry.

I think the second part of your question was really how we split the type curves and my response to that would be that we just haven't seen the data yet to confirm or deny a type curve.

Okay and just as it relates to the early flow back on the second well I know it's very early days but how does that translate to what you saw on the elite well? Is it kind of in line with the elite well or is it turning ahead of what you saw at same stage?

Well I would add though as Allan said few moments ago that we are more encouraged at this point in this well than perhaps we were on the first well. I think the way I have to describe this -- is that we haven't had anything that are optimism.

Okay Allan and one just for you I know a lot of people going through bank determinations now specially on the private side. What is the M&A market look like right now compared to what it looked like two or three months ago and do you think there is -- the M&A market looks little better now from the transaction standpoint?

I would say that it's slightly better but I think it's going to – I think probably in the first quarter of next year is when you are going to see more activity I think there is limited activity now. I think there is some of this is beginning to get home with people and but I don't think you will see as much at the end of this year as you will next year when I think it becomes more real to some people. I anticipate next year be a pretty active year for M&A.

Okay. I appreciate the answers. Thank you. I will get back in queue.

Thank you.

And we will now go to Kyle Rhodes with RBC.

Hey guys! Certainly some encouraging on the second my result early on is that well cut on wells doing increasing?

Yes. It is increasing in this point but we had a flip on the vast oil relative to the water. So we expect that content – that trend will continue. We are just going to keep the things.

Great. And just kind of I guess tying that into your fourth quarter guidance just curious kind of what you baked in from the Muddy kind of in that guidance number?

We didn’t bake very much in there Kyle. It just come along now which is in November and as Carl mentioned it's going up. It's only one well. So the third well won’t be completed probably until spring because we watch both and compare how they both perform with first and compare performance on those before we decide having completing the third one. So there is not a whole lot in the fourth quarter related to that well.

Now that makes sense. I guess you guys need to see the completion of the third well before you would think about adding a dedicated rig there in 2016 or is two kinds of results enough. As you are kind putting your budget together around year end. Would that be enough to kind of go and allocate a full rig there for 2016?

No, I think we are going to test this well. I think we are going to make our budget, will have some contingencies in that, will see how this well and the first well produced for a period of time. If we can get cost to the point where we tell like we could get the type of return that we need. We would certainly want to do that. That’s something that we are continuing to focus on and work on but it’s going to take a little bit more time before we will be in a position to do that. But it is something that‘s on our minds. And Kyle when we go out with our budget at the end of the year will have a better idea hopefully of what the price environment might be for 2016 so that will play into as well.

Got it and then this kind of on the M&A front. Can you guys give us a sense for kind of flavor of deals that you guys are looking at these days and then how would you think about funding a deal, are you willing to do equity fees levels or is there kind of a more creative type of funding you guys are looking at?

Yes, we are looking at opportunities tied in and around our existing areas of operations but also in areas sort of they are very similar to where we operate. So but we need it’s as you can appreciate it’s pretty difficult finding things plays that were today and unless you’re in the core of a particular play. So yes we have been active again both on the asset side and on the corporate side as well there has been anything that really that has been a great fit, from a financing standpoint I think that we look at what our cheapest cost of capital going to be and how we could best structure it going forward. If you recognize the market has gotten pretty choppy and we were with a deal not long ago and the market increased like 200 basis points in like a 30 or 40 day period. Where we were working on a deal. So it’s a challenging environment for sure but with our balance sheet we feel like we can get some things done.

And certainly the profile of whatever we are looking at would dictate how we might proceed on the financing side as well. So it’s sort of different for every deal we look at actually.

Got it, got them and this one final one for me. You guys have an estimate for kind of one year base decline for your onshore assets assuming no new drilling?

Probably 10 to 15% Steve said is exclusive of new drilling.

And that will conclude our question and answer session. I’d like to turn the call back to Mr. Allan Keel for any additional or closing remarks.

We would like to thank everybody for participating today and we look forward to updating you at our next call. So thanks so much.