Question-and-Answer Session
Operator
(Operator Instruction). Your first question comes from the line of Nicholas Pope from Dahlman Rose. Please proceed.
Nicholas Pope - Dahlman Rose
I had a quick question just in terms of the cash spend for the first quarter. Could you help breakout what you all are spending in terms of drilling and acreage acquisitions, et cetera, for the quarter?
Mike Watford
No. We spent $220 million of capital in the first quarter and our cash flow was $120 million or so. There are roughly some $20 million of additional acreage expense in Pennsylvania. That's the only acreage cost. There's a little seismic and rest of it is for drilling wells.
Nicholas Pope - Dahlman Rose
You all discussed a lot of the reserve potential, before we all get to see it, with a little bit of incremental drilling. How do you all view some of the restrictions on like the timing that it would take to drill up some undeveloped reserves? Do you all think about putting some limitation on length of time to develop?
Mike Watford
In our current proved undeveloped bookings, we limit approximately three years. We're probably the most conservative company out there. That's the only way we've been able to hold back through reserves in terms of bookings at this point in time.
The net asset value calculation that we go through and will still go through assumes just flat capital for the 23 years to drill up the existing asset base at yearend '08. So to the extent we accelerate that flat capital, hen obviously we'll bring present value forward. I don't know if that answered your question.
Operator
Your next question comes from the line of David Tameron from Wachovia. Please proceed.
David Tameron - Wachovia
Mark, I hate to do this to you, but can you repeat that cost guidance. I missed part of it for the second quarter.
Mike Watford
I think what he says we're the lowest cost operator out there and we're going to have lower cost in the second quarter. He is looking up the details.
David Tameron - Wachovia
While he is looking out, let me ask you a question. You just said it in the call 10% production growth 2010, 2011 while under spending cash flow?
Mike Watford
Yes, that's correct.
David Tameron - Wachovia
Can you give us a price that you are assuming?
Mike Watford
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