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Q4 2008 Baytex EnergyTrust Earnings Conference Call - Final.

Article Excerpt
OPERATOR: Good afternoon, ladies and gentlemen. Welcome to the Baytex EnergyTrust year end conference call. Please be advised that this call is being recorded. I will turn the meeting over to Mr. Derek Aylesworth, Chief Financial Officer. Please go ahead, Mr. Aylesworth.

DEREK AYLESWORTH, CFO, BAYTEX ENERGYTRUST: Thank you. Ladies and gentlemen, while listening to this conference call please keep in mind that some of our remarks will contain certain forward-looking statements within the meaning of applicable securities laws. We caution that the assumptions used in the preparation of such information although considered reasonable by us at the time of preparation may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors many of which are beyond our control.

We refer you to the advisory regarding forward-looking statements in our press release issued today for additional information about the assumptions used in the preparation of the forward-looking statements and the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking statements. There is no representation by Baytext that actual results achieved during the forecast period will be the same in whole or in part as those forecast. I'll now turn the call over to Tony Marino, Baytex EnergyTrust President and Chief Executive Officer.

TONY MARINO, PRESIDENT, CEO, BAYTEX ENERGYTRUST: Thank you Derek. Ladies and gentlemen thank you for calling into our conference call. We are pleased to report our fourth quarter and year end 2009 results. I'll start with our operational discussion, Derek will follow with our financial results and I'll make some summary comments before opening the conference to your questions.

Our operating results continue to be strong in the fourth quarter and for 2008 as a whole with respect to both production and reserves. We achieved quarterly production of just over 42,000 BOE per day in Q4. This resulted in a second half production average post-acquisition of the Burmis Energy assets of about 42,300 BOE per day. In terms of production level the third and fourth quarters of 2008 were the highest in our history.

For 2008 as a whole we averaged over 40,200 BOE per day which was a record annual production level for Baytex. These production results were aided by strong performance in the Burmis properties that we acquired at the end of the second quarter. The Burmis properties averaged about 3,400 BOE per day in the fourth quarter which was right on track with our preacquisition forecast. We drilled several strong wells on the Burmis properties and are in the process of installing a pipeline which will allow us to increase gas production rates from these new wells.

Our heavy oil production performance was also quite strong with production averaging about 24,600 BOE per day in the fourth quarter. Despite the decline in prices for WTI heavy oil pricing as of today remains relatively strong due to significantly narrower heavy oil differentials which Derek will discuss in more detail later in the call. With current market prices for heavy oil...