Mark Bunch: Yes, Donovan, we haven’t done a full pro forma. We tend to look at it sequentially right quarter-to-quarter. And so we can try to come back with you on that for trying to pro forma out those acquisitions or as if we own them the full year. But I mean, ultimately, I think — at the end of the day, right, we have seen declines in the assets for natural reasons, but this last fourth quarter, unfortunately, we got hit with maintenance in three of our fields, which are our major asset fields extended downtime combined with pretty much the lowest prices we’ve seen realized in two years. So, unfortunately, it hasn’t — it wasn’t great timing for all of us, but we can certainly get back to you on — what we think — you’re trying to get to what the actual field decline is field-by-field kind of–
Donovan Schafer: Well, we’re just getting into kind of your blended decline factoring out those step function increases from transaction. So, I guess, you could — if that is something you feel like you know the answer to, are we still sitting at a, I don’t know, 5% annual decline rate for — in a business as usual situation without incremental acquisitions or where do you think this does from a decline rate standpoint?
Mark Bunch: I think we’ve guided before to like high single-digit to 10% sort of annual decline. We don’t — I don’t think that that’s necessarily changed, but the fourth quarter obviously is going to throw some things off when you’re looking at decline rate.
Donovan Schafer: Sure. Yes, okay. And then also — yes, go ahead.
Mark Bunch: Yes. Just a quick deal, and I want to make sure you understand like the Williston, that compression issue was resolved also during the quarter. It was just a one month downtime and it’s back up.
Donovan Schafer: Okay. And so then from a — kind of — I mean, I know you don’t give guidance, but maybe does it — is it reasonable for us to think there will be kind of like a reversal of things where this kind of a, I don’t know, pop might be too strong of a word, but a movement back up in terms of total production numbers going like from this quarter to the next quarter just because a lot of that has been fixed and there’s a little bit of an upward just to get back on to a normalized decline? Is that a fair expectation?
Ryan Stash: Yes, Donovan, in order to avoid guidance, we won’t say a whole lot on that, but, I think you understand that there were some unique events that happened.
Donovan Schafer: Okay. And then I think John did ask about the at the PEDEVCO costs associated with that. You may have asked this too and maybe I missed it, but just kind of the timeline of when that would start to contribute some amount of incremental production?
Kelly Loyd: So, again, that’s something we are working with them on. I think both parties are incentivized and excited to get those initial three well pad anyway going as soon as is practical and we’re both comfortable doing that. So, I’m not going to give you any specific timing, but I — look, I’m hopeful it will be sooner rather than later and expect that.
Donovan Schafer: And this is similar conceptually to what you guys did in the Willow then, right? I mean, there might be some differences to the terms with the same idea of having a way, an avenue through which you can drive growth when it’s not an attractive market for M&A? Is that are they is it appropriate to kind of put the two in the same bucket?
Ryan Stash: It is and in our mind, those are they will compete for capital just like everything else do with our next marginal dollar. We — at this time, look, we think the economics are very attractive in the Chaveroo field with PEDEVCO. So, that’s absolutely yes. These are just it’s gone to a point where they’ve moved to the front of the line. We think they’re very good economics.
Donovan Schafer: Okay, okay. That’s good. And can you talk about how you source the deal? Just I know that sometimes there can be some interesting nuggets there. Did this come into any atypical channel or just the relationships you already have? They came to you and you would be interested in some conventional stuff. And I know this isn’t technically EOR, but you kind of understand you’re familiar with this type of taking a second pass at things. So, yes, how did this kind of come about?
Kelly Loyd: Well, it mostly came about — I got a call from Doug Shick at PEDEVCO whom I’ve known for several years. We actually used to coach PW Football against each other and I’ve known Doug and we’ve spoken over the years various business deals. And I believe Doug had an advisor looking in to do something. I think it was the ROTH guys who have been very good for them. It made natural sense. It’s nice to do business with someone you can trust.
Donovan Schafer: Okay, that’s helpful. All right. I’ll take the rest of my questions offline. Thanks guys.
Kelly Loyd: Thanks Donovan.
Operator: The next question comes from Jeff Robertson of Water Tower Research. Please go ahead.
Jeff Robertson: Thanks. Mark, one question on the downtime, are you aware of any service that you expect over the next couple of quarters from your midstream providers into Barnett Shale?
Kelly Loyd: No, not really
Ryan Stash: I wish they’d let us know when they’re going to do that, but unfortunately don’t. I mean, I think we talked about this before right. So in length took over for Crestwood, right. Crestwood sold the system and they’ve had extended growing pains of trying to optimize the way they run the area. Our operator and partner diversified is certainly talk to them a lot. And so we certainly hope and expecting them to do a better job going forward. But unfortunately, they’re not going to give us any insight as to they’re going to have downtime or issues, unfortunately.
Jeff Robertson: Thanks. Partially read through the operating agreement that I think was filed in an 8-K by PEDEVCO this morning. Kelly, with respect to the initial three wells, I think you said the goal would be to spud the first one by the end of this year. Would your expectation be to drill all three of those back to back and then complete them back to back or would it be one well drilled, one well completed? Can you talk about how you think about that initial pad development?
Kelly Loyd: I’ll let Mark talk a little bit more to that, but look, just from an economic standpoint, drilling them on a pad as a package is a better deal. So, that’s certainly our expectation.
Mark Bunch: Yes, no, they’ll be drilled back-to-back and then completed back-to-back. That’s the expectation right now because that’s most — that’s the most — makes the most economically viable way to do it and then they’ll be brought online at the same time.
