Hello, and welcome to the Delta Petroleum Corporation Second Quarter 2011 Earnings Conference Call and Webcast. [Operator Instructions] Please also note that today's event is being recorded. At this time, I would like to turn your conference call over to Mr. Broc Richardson, VP Corporate Development, Investor Relations. Mr. Richardson, please go ahead.

Thank you, and thank you to all of you for joining us for Delta's second quarter 2011 financial and operating results conference call. Before we begin, I would like to remind you that we are conducting this call under Safe Harbor and that this call will include projections and forward-looking statements within the meaning of the federal Securities laws and are intended to be covered by the Safe Harbor provisions. In that regard, you are referred to the cautionary statement displayed on Delta’s website, which is incorporated by reference with respect to the information provided for this call. Investors are urged to closely consider the oil and gas disclosures and risk factors set forth in Delta’s Form 10-K for fiscal year ended December 31, 2010, as updated by subsequent periodic and current reports on Forms 10-Q and 8-K respectively. Today's speakers from Delta are Dan Taylor, Chairman of the Board; Carl Lakey, President and Chief Executive Officer; and Kevin Nanke, Treasurer and Chief Financial Officer. I will now turn the call over to our Chairman, Dan Taylor.

Thank you, Broc, and good morning, everyone. I want to thank all of you for taking the time to join us today on this call on this very difficult market. There are several things I'd like to go over on today's call, all of which are positive for Delta, and I'm enthusiastic about sharing them with you. First, are the results thus far of our 2C well on the Vega Area. Carl will discuss the specifics of that well and its results to date in greater detail. But needless to say, we're very excited about what we are seeing in this well, the potential it holds and what it means for Delta. While the process to get to this point took longer than we anticipated, we are pleased to have a flowing well that is in the process of confirming substantial quantities of economic reserves in the deeper shale formations of the Piceance Basin. We are still in an early phase of production and have yet to run a production log and are still clearing fluids. As such, there is still much to learn about the open zones in this well. Other operators continue to report similar results in the Mancos and Niobrara formations and it is gratifying to see the play being confirmed around us. Second, we have retained Netherland Sewell as our third-party reserve engineering firm. As many of you that follow the industry know, Netherland Sewell is a highly respected engineering firm and known to be among the best and most experienced in unconventional resource plays. Their reserve report provides independent confirmation of our internally prepared proved reserves, probable reserves and total resource potential of the Vega Area. Third, I'll provide a brief update on our strategic alternatives process. The data room opened on August 3 and…

Thank you, Dan. I absolutely share your enthusiasm about our progress at Delta. For the past of couple of weeks, I've been looking forward to this conference call. Although Delta delivered another solid quarter, I will defer to Kevin to demonstrate this when he discusses the financial metrics achieved. There is so much more to share with you today. I will start my remarks with a short update on the 2C well. Initial production from 2C certainly took longer than expected due to previously disclosed mechanical difficulties and more recently, equipment availability. But early results confirm the exciting potential of the shales under the Williams Fork formation. We have already shared with you that production began on July 20 and sales started on July 21. Peak production was obtained on July 28 at 5.4 million cubic feet per day with 8,360-psi flowing tubing pressure on a 7/64-inch choke. Production has generally ranged between 2.5 million and 3.5 million cubic feet a day at choke restricted rates between then and now. The choke has been opened in 2 small incremental steps and is currently at 9/64 of an inch, with the last 24 hours averaging 6,100-psi flowing tubing pressure and 3 million cubic feet per day. Lab analysis shows that the oil produced in late July was 38 degrees API gravity with essentially no sulfur content. There has been little to no oil since that time, but shifting water chemistry and changing gas composition suggest that some of the deeper frac stages are just beginning to contribute to production. These are the intervals that the logs suggest would be where we should expect heavier hydrocarbons to be recovered. In the 2-week producing weeks, we have recovered less than 5% of our frac load to date. I want to emphasize to everyone…

Thank you, Carl. Good morning. In June, we announced that the remaining Gulf Coast non-core assets were sold for $43.2 million, of which a portion was used to pay down our credit facility and the remainder will be allocated for Piceance development. At quarter end, and today, we have $18 million undrawn available under our borrowing base, which is sufficient for our current capital development program and debt service obligations for the remainder of 2011. EBITDAX from the continuing operations for the second quarter was $3.6 million, which compares to a first quarter EBITDAX of $4.8 million adjusted for the non-core asset divestiture in late June. The decrease in EBITDAX during the quarter was primarily due to a 7% decline in production from continuing operations and realized financial hedge losses absorbed in continuing operations. For the second quarter, we reported total production of 3.18 Bcfe, slightly under our guidance. We anticipated completing our 2 remaining inventoried wells. However, with limited frac crews and a focus on the shales, we decided to leave the 2 completions for a later date. As Carl mentioned, operating metrics in the Piceance have improved. For the second quarter in a row, Vega lease operating expense came in under $1. Second quarter averaged $0.87 per Mcfe. We expect to continue to maintain these levels. With the addition of the shale production, we believe these numbers can improve, given the large fixed component in our cost. We reduced our G&A cost to $6.5 million in the second quarter, of which $2.4 million was non-cash equity compensation. This equates to a Delta stand-alone cash G&A for the second quarter of approximately $4.1 million, which is slightly lower than the cash G&A guidance of $4.5 million per quarter given at the beginning of the year. DHS sold its trucking company during the quarter, generating approximately $3.3 million in proceeds, which were used to reduce debt. Over the last quarter and a half, DHS has been working with a group that had interest in a number of our rigs. Recently, they informed us that they were having trouble obtaining their financing. As such, both Delta and DHS's other significant shareholder are in discussions as to a path forward. Regardless of the path, Delta does not believe that significant upside exists above the debt. As such, it should also be known -- or noted that all DHS debt is nonrecourse to Delta. Over the next several months, we look forward to working with Macquarie and Evercore on our strategic alternatives process to bring value to our shareholders. With that, we will open it up to questions.

[Operator Instructions] And at this time, I'm showing no questions. I would like to turn the conference call back over to management for any closing remarks.

Thank you very much for attending our second quarter conference call today. We do appreciate you taking the time to listen and we look forward to speaking with you again later. Thank you.

The conference has now concluded. We thank you for attending today's presentation. You may now disconnect your telephone lines.