Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steven Karpel – Credit Suisse.
Steven Karpel – Credit Suisse
Can you elaborate a bit more on kind of discussions with the banks in terms of is there a potential to bring in additional banks to replace the $90 million that’s going away? And, in terms of kind of the thought process from the banks and kind of timing and what have you there?
Timothy S. Granger
The note has to be resolved by end of June, early July, I think July 2nd of this year. Our indications to the bank is that we’d be more than happy to resolve our discussions earlier and so we are in discussions with the banking syndicate right now. In terms of bringing in additional banks, though we’ve had some initial discussions there are no new banks in the syndicate at this present time.
Steven Karpel – Credit Suisse
Then, kind of switching focus a little bit, some of the G&A costs I just wanted to follow what’s kind of the cash cost associated with that and what’s kind of the total, some of the total savings here?
Timothy S. Granger
Well the total savings we’ve seen on G&A, this would be based on 2008 actuals, what our projections are going forward so we’ve gone through some restructuring internally and we see about $9 million of gross costs coming out of the system right now.
Steven Karpel – Credit Suisse
None of that is in Q1?
Timothy S. Granger
That would be annualized for the year.
Steven Karpel – Credit Suisse
What are the cash costs associated to achieve the savings?
Timothy S. Granger
Restructuring costs?
Steven Karpel – Credit Suisse
Well, the actual cash restructuring associated?
C. W. Leigh Cassidy
The restructuring costs were all accrued at end of December, so within the actual G&A costs for the first quarter there were no particular restructuring costs associated with them so the costs that were reflected in the first quarter were our pure cash costs of operating. There was a slight increase year-over-year where we’re coming in around $3.19 per BOE but management continues to look at initiatives in order to reduce overall costs and realize cost efficiencies throughout the year. So, within the G&A for the first quarter there were no restructuring costs included in those numbers.
Steven Karpel – Credit Suisse
Can you elaborate a bit more too on the couple of farm outs that you’ve done in terms of their size and kind of how the economics of it worked and what have you?
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