Question-and-Answer Session
Operator
(Operator Instructions) And your first question comes from Mike Scialla of Thomas Weisel Partners. Please proceed.
Michael Scialla – Thomas Weisel Partners
Hi guys. It’s Mike Scialla with Thomas Weisel.
Timothy Leach
Hi, Mike
Michael Scialla – Thomas Weisel
I don’t want to hurt your negotiating thought here but I just wonder what kind of cost reduction you think you’d need to see in Lower Abo play if oil prices stay where they are in order to get excited about drilling some more wells there?
Timothy Leach
Mike, it's not so much of cost reduction we’re waiting on there. It was just one of the things that was – the knob that was easiest for us to turn off. Our leases have long-term over there. So, I would expect to stand rigs up back there even at the current cost level. However, I would say that from where we are today, we still expect to maybe over the next several quarters to get more cost reduction out of the capital side of the business.
Michael Scialla – Thomas Weisel
Okay and what's your net acreage position there now?
Timothy Leach
About 22,000 net acres.
Michael Scialla – Thomas Weisel
So you really haven't added anything there recently?
Timothy Leach
No, we’ve had recent acreage acquisition but not anything since two or three weeks ago, when we reported.
Michael Scialla – Thomas Weisel
Okay. And in the Yeso, last year you said you expanded that to the North. Can you indicate how much acreage that added or additional locations if you kind of exclude the down spacing?
Timothy Leach
Well, this will be exclusively because of our northward expansion. It did not add any acreage. Generally all of our acreage is held by production. But if you remember last year when we talked about the number of combo wells that we had in inventory it was some number on the order of about 600 and now we have about a 1000.
Michael Scialla – Thomas Weisel
And that's all due just to the ?
Timothy Leach
No, that’s not due just to the northern expansion, but the northern expansion was a big contributor to that.
Michael Scialla – Thomas Weisel
Okay. And then what do you need to see in terms of being confident that 10 acres spacing is going to work on for the Blinebry and on all that acreage?
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