Pretty Much in line with expectations. Nice to see they are planning for an expansion late 2011,early 2012. This gives them time to strengthen the balance sheet.

Production finally averaged over 6500 bbl/d in a quarter and should be 7000 bbl/d 2nd quarter with the ESP's. I don't see an average of 8500 bbl/d from POD 1 for the year as this would mean they would be hitting 10,000 bbl/d at some point to make up for 1st quarter below 7000. I can see them average 8500 bbl/d in 4th quarter with all esp's in place.

SP will drop to start tomorrow as it always does on any news but should start a slow climb again once steaming starts and Algar budget/costs is finalized.