CLB
#Very good.
Good morning, <UNK>.
Yes, <UNK>, we are agnostic.
We work for them all.
Yes, the majority of its related to just the capacity that we have to provide services to the marketplace and the absorption on our manufacturing.
So we've tried to reduce costs there.
We've not seen any significant price alterations since the peak.
We certainly have seen some but we are trying to extend terms with those clients to work through that.
So it's more related to the capacity that we have to deliver and the absorption of that.
And we've reduced cost about as low as we want to in keeping with we our ---+ we're seeing a rebound in the activity levels and just didn't want to cut anymore of that productive capacity away either from a field service aspect or a manufacturing of perforating guns and perforating charge systems.
Okay, <UNK>.
No, we will have higher revenues from the reservoir fluids side in 2017 at higher margins.
No, we've been approached ---+ the six projects we've been [in house] primarily we've been approached by clients, some of which have prescribed to us what they want to see in the flood fields for the gases and fluids for the injection.
And the other half have come to us and said, okay what can you prescribed or what cocktail do you think would work best for admissible flood given our reservoir and our reservoir fluids.
So it's a combination really of both.
Okay, very good.
Good morning, Greg.
Yes, absolutely.
As we see longer laterals, more stages, closer clusters, all of that works for greater intensity for Core Lab revenue.
And of course we started that mantra three years ago.
We think it still is the key to success.
When we look at laterals for instance in the Permian Basin, on average a lateral somewhere around 5,000 feet going to over the next year at the 7,000 or 8,000 feet.
We ultimately see those laterals in some of the Core features of the Permian Basin and several of the layer cake plays their extending out beyond 10,000 to 12,000 feet.
And you already have some technologically sophisticated clients that are actually doing that.
Yes, it will just show up in the numbers because depending on the reservoir, the client, the depth, the pressure, the fluids, there's just too many variables in that equation to come up with a one-rule-fits-all.
It's a very good general trend.
Okay, Greg.
That's that long-lost sister.
Yes, low, low single-digits.
Go ahead.
Yes, traditionally for production enhancement two-thirds is US related, one-third international.
That probably has shifted just because of a loss of revenue to 60% US, 40% international.
And international may have gained a bit on the penetration side where as just the sheer number of wells that are not being drilled in North America have led to the amount of fall in revenue to 60% level in North America.
It has positively affected our higher tech as we have offered new products.
We would've thought by now all of our lower technology, basic technology products would've been out of the system.
But just due to increased absorption that they do provide to us we've kept them in the product line.
We are hoping during this next cycle that we can remove those from the product offering.
Rocco, we will take one more question.
Good morning, Ben.
From a pricing standpoint from Q2 to Q3 into Q4 really little effect.
What's having more effect on us is just the lack of activity levels through that period.
So on pricing, not a big Delta.
Okay, Ben.
Very good.
Rocco, we are going to close it out.
So in summary, Core's operations continue to be positioned ---+ position the Company for an uptick in activity levels in Q4.
And we know that significant challenges await; however, we've never been better operationally or technologically positioned to help our clients maintain and expand their existing production base.
We remain uniquely focused and are the most technologically advanced reservoir optimization Company in the oil field services sector.
This positions Core well for the challenges ahead.
The Company remains committed to industry-leading levels of free cash generation, returns on invested capital with all excess capital being returned to our shareholders via dividends and future opportunistic share repurchases.
So in closing, we'd like to thank all of our shareholders and the analysts that follow Core.
And as already noted by <UNK> <UNK>, the executive management board of Core gives special thanks to our worldwide employee base that have made these results possible.
We are proud to be associated with their continuing achievements.
So thanks for spending your money with us ---+ morning with us and we look forward to our next update.
Goodbye for now.
