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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Q2, 2020 TransAtlantic Petroleum Ltd. Earnings Conference Call. At this time all participants are in listen-only mode. Please be advised that today’s conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Tabitha Bailey, General Counsel. Thank you. Please go ahead.
Tabitha Bailey: Good morning. Welcome to TransAtlantic Petroleum's Second Quarter 2020 Earnings Conference Call. On the call today we have Malone Mitchell, our Chairman and Chief Executive Officer; Michael Hill, our Chief Accounting Officer; and myself. During today's call we will make certain forward-looking statements, which include statements regarding our belief, goals, expectations, forecasts, projections and future performance, and the assumptions underlying such statements. Please note that there are a number of factors that may cause actual results to materially differ from our forward-looking statements, including the factors identified and discussed in our earnings press release, which we issued after the close of business yesterday and in our SEC filings. Please recognize that except as required by law, we undertake no duty to update any forward-looking statements and you should not place any undue reliance on such statements. Now, I will turn over the call to our Chairman and Chief Executive Officer, Malone Mitchell.
Malone Mitchell: Thank you, Tabitha. Good morning ladies and gentlemen. Thank you for calling in to the TransAtlantic Petroleum Second Quarter 2020 Conference Call. As with most other oil companies, the second quarter of 2020 resulted in the poorest financial results in several years. Our Chief Financial Officer, Michael Hill, will review those results shortly. TransAtlantic Petroleum remains financially and operationally focused on maintaining its existing producing wells and moderating the production decline from those wells. The company does not have the cash flow or cash balances after operations and debt service to drill additional new wells this year, and therefore expects production to continue to decline. The company does not expect to have the cash flow to pay its preferred dividends in cash and therefore expects to continue to issue common stock as dividends subject to board review and approval. The Board of Directors recently approved and entered into a plan of merger with an entity comprised of all of the preferred shareholders of the company. This is consistent with terms contained within public filings of a letter of intent filed on July 2, 2020. Likewise the Board recently approved and entered into a loan agreement to provide funds to maintain operations and senior debt service through the effective date of the transaction. Since 2015 the company has been unable to secure adequate and acceptable credit to conduct its business, utilizing only its own assets as collateral. Both the plan of merger and loan are subject to significant conditions and processes. The company is preparing a proxy form, which it expects to complete approximately month end. Further information is available in the company's filings and will be supplemented through the proxy form. These continue to be found on the TransAtlantic company website by going to the Investor Section, then to the Financial Information tab and then to the SEC Filings. Now, I will turn the call over to Michael Hill to review the financials.
Michael Hill: Thanks Malone and good morning everyone. As disclosed in our press release, along with our 10-Q filed yesterday, I’ll provide an update on our second quarter 2020 operating results. We reported a net loss was $7.7 million or $0.12 per share during the second quarter of 2020, compared to a net loss of $24.0 million or $0.38 per share for the first quarter of 2020 and a net loss of $9,000 or $0.00 per share for the second quarter of 2019. Our 2020 second quarter revenues were $6.5 million. This was down 22% from the first quarter and down 62% year-over-year. The decrease in our second quarter revenues as compared to the first quarter was driven by a 13% decrease in our sales volumes and 11% decrease in our average realized price per BOE received. The decrease in revenues from the second quarter of 2019 was driven by a 50% decrease in our average realized price per BOE received and a 24% decrease in sales volumes. Our second quarter G&A expenses were $2.4 million. This was flat from the first quarter of 2020 and down 11% from a year ago. The decrease in G&A from the second quarter of 2019 was due primarily to a decrease in personnel expenses, as well as travel and office expenses compared to the same period a year ago. Our second quarter production expenses were $2.4 million. This was down 32% from the first quarter and down 12% from a year ago. The decrease in production expenses in the second quarter compared to the first quarter was primarily due to a decrease in contract labor, personnel expenses, equipment repairs and maintenance and a decrease in utilities and diesel fuel consumption. Our second quarter adjusted EBITDAX was $0.8 million compared to $8 million in the first quarter of 2020 and $10.7 million in the second quarter of 2019. The decrease in adjusted EBITDAX from the first quarter was primarily due to a decrease in our realized derivative settlements, which decreased $6.6 million and a decrease in revenues of $1.9 million. This was partially offset by a decrease in production expenses of $1.1 million and a decrease in transportation expense of $0.2 million. The decrease in adjusted EBITDAX from the second quarter of 2019 was primarily due to a decrease in revenues of $10.7 million. This was partially offset by a decrease in production expenses of $0.3 million, a decrease in G&A expenses of $0.3 million and a decrease in transportation expenses of $0.2 million. During the second quarter working capital decreased to $1.0 million at June 30 from $3.2 million at March 31. The decrease in working capital was primarily due to the decrease in cash of $4.3 million, an increase in our derivative liability of $3.2 million and an increase in current debt of $0.6 million. This was partially offset by an increase in our note receivable of $3.5 million and a decrease in AP and accrued liabilities of $2.2 million. Our capital expenditures were $0.69 million during the second quarter of 2020, that’s compared to $2.9 million in the first quarter and $6.2 million in the second quarter of 2019. We expect our capital expenditures for the remainder of 2020 to range between $1 million and $1.5 million; however, this is subject to change at the discretion of the Board. I'll now hand the call back over to Malone.
Malone Mitchell: Thank you, Michael. This concludes our prepared remarks for the second quarter of 2020 financials and operations, and we wish you a very good balance of the week. Good day!
Operator: Ladies and gentlemen, thank you for your participation in today's conference. The does conclude your program and you may now disconnect.
No analyst estimates available