Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen we will now conduct the question and answer session. (Operator Instructions). Your first question comes from Katherine (inaudible) from Jeffries & Company. Please go ahead.
Unidentified Analyst
Good morning. Could you provide your cash balance pro forma for the equity offering, the overwriting royalty interest and the repayment of some of your bank debt?
Leigh Cassidy
At what particular point Katherine are you interested in that pro forma.
Unidentified Analyst
Current cash balance.
Leigh Cassidy
Our current cash balance is zero, because we maintain our, we use our bank lines as a cash flow management tool. Bank lines are currently drawn at approximately $112 million.
Unidentified Analyst
Great. And as for operating costs, could you talk about any reductions you are seeing and I know you are listing costs currently and going forward.
Shannon Ouellette
Right now we are seeing the effect of the market slowing down though we have savings from chemicals, of course power has been a lot lower over this quarter also so that’s really impacted us. Also we’ve had some cost saving initiatives in the field, just looking at the small things and trying to keep our operating cost under control. On the go forward basis our dollar per boe will be pressured with the lower volume, but we are anticipating and furthering these OpEx reductions in 2010.
Unidentified Analyst
Okay, great thank you very much.
Operator
Your next question comes from Terry Peters from Canaccord Adams. Please go ahead.
Terry Peters - Canaccord Adams
I have two questions, the first is do you have an idea of your current decline rate on your base production you have been I guess for the last number of quarters capital spending has been limited and the production has come down, but is this is your rate of decline changing over time? And secondly for incremental comp flow expenditures you have reviewed some of your project areas what do you think your capital efficiency on incremental spending would be in terms of cost to bring on new production?
Shannon Ouellette
First of all on the decline, we are seeing the decline come down, basically because our development has slowed down. We’ll be at about approximately 22% for 2009, leveling out to 21% in 2010 is what our forecast is showing right now. On the capital efficiency, our preliminary look for 2010 are somewhere between 20,000 and 30,000 somewhere in that range per boe.
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