RE:ok
FOURTH QUARTER 2015 HIGHLIGHTS Achieved average production of 9,319 boe/d (95% liquids), a per share increase of 16% over the previous quarter and 6% over the fourth quarter of 2014. Realized continued improvements in operational efficiencies and cost reductions across all aspects of our business: Delivered operating and transportation costs of $16.48 per boe, a reduction of 6% from the third quarter of 2015 and 14% from the fourth quarter of 2014. Reduced average drill, complete and equip ("DC&E") costs for single leg open-hole horizontal wells to approximately $750,000 in the fourth quarter of 2015 compared to approximately $1.1 million in the fourth quarter of 2014. Increased funds flow from operations by 13% over the third quarter to $16.2 million, despite an 8% decrease in the Company's realized oil and liquids price over the same time period. Drilled 11.6 net open-hole wells in the fourth quarter, with a 93% success rate. These wells delivered an average first 30 days of production ("IP 30") of 136 bbls/d, approximately 25% above our internal type well of 109 bbls/d. Maintained balance sheet strength, with net debt at the end of the quarter of approximately $86.3 million, or 1.3 times trailing 12 months cash flow Spartan intends to continue to take a disciplined approach to capital spending, and we will monitor the commodity price environment and adjust our annual capital expenditures to approximate our annual cash flow. Following completion of the bought deal financing and assuming the underwriters' option is exercised in full, Spartan anticipates being undrawn on its $150 million syndicated credit facility. This financial flexibility leaves Spartan well positioned to take advantage of acquisition opportunities afforded by the currently challenged commodity price environment