Question-and-Answer Session
Michael Coffman
Yes, sir.
Unidentified Audience Member
(Question Inaudible).
Michael Coffman
For you on the internet, he asked why we bought back stock, how we rationalized buying back stock. We felt like our stock was a good buy, we looked at our reserves per share of stock; we just felt like that our stock was a tremendous buy in the market at that point in time and committed to make $5 million stock buyback in two tranches, if you will, and have that completed at this point.
I do not know if we will be doing any more buybacks at this point, but it is a potential that we could. Now some people have asked do we think that will. We do not trade a whole lot of shares on a daily basis if they think that buying back shares will hurt our daily trading volume. Actually since our buyback started, when we moved to New York Stock Exchange, I think our trading volume has more than doubled, and we have seen it continue to go up on a daily basis. So that is where we are at on the stock buyback.
Any other questions? Yes, sir.
Unidentified Audience Member
(Question Inaudible).
Michael Coffman
I am sorry, capital expenditures?
Unidentified Audience Member
(Question Inaudible).
Michael Coffman
Two or three years out? It is hard to say right now. It depends on how active some of the companies that are drilling in the Woodford and the Fayetteville get principally in the Woodford. We are seeing a significant number of new rigs being moved into the Woodford. Newfield continues to say that they are going to put more rigs drilling in the Woodford. BP obviously, and XTO did not buy into the Woodford from Chesapeake not to put more rigs in the field. So I suspect that our capital expenditures are going to continue to grow at a rate that we have seen from '07 to '08.
Is it going to double, triple? I really do not know that [Scott], we are at the mercy of the companies that operate the wells. I do think we are going to have the opportunity to continue to spend a lot more money in our projects. Also at the [Johnner] City project works that we talked about, very significant number of wells to be drilled there. That is probably you are looking at probably eight wells per section there also.
- To read the full transcript on Seeking Alpha, click here »
