Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of John Freeman of Raymond James.
John Freeman – Raymond James
Hi guys, great quarter.
Gil Goodrich
Thanks, John.
John Freeman – Raymond James
First, on just the traditional Cotton Valley, it seems like consistently here in the past several quarters we have seen the average IP rate on those wells go up. Is that just kind of a high-grading of your prospect? Do you do anything differently in these last few quarters on the completion side or kind of a combination of both?
Gil Goodrich
Rob, I’ll take that. John, first, good morning. I think it’s a combination of things. Yes, we are always continuing to tweak and refine and hopefully better select the specific intervals we want to complete in our fracs. I’d say a big contributor obviously is the blending in of higher performance type reservoirs, i.e., the James Lime horizontal drilling that we’ve done, and collectively that’s just resulted in more positive results across the board.
John Freeman – Raymond James
Okay. And then just following up on your comments, Gil, in terms of kind of the preliminary kind of outlook for the CapEx budget in ’09, it would seem to indicate, which is based on your comments on the CapEx towards the Haynesville of about couple of hundred million and relative to the OE CapEx budget $350 million that is it kind of safe to assume that in ’09 that unlike the past, majority of your CapEx is going to be devoted towards Haynesville, maybe to a lesser extent to James Lime and then the Cotton Valley, kind of high-grading where the highest return projects are the ones getting the majority of the CapEx.
Gil Goodrich
John, I think that’s fair. Obviously we don’t want to get our in front of our board on either the allocation or the absolute amount of 2009’s program. But I think it’s fair to kind of think of us as maybe slightly decreasing the Cotton Valley, Travis Peak, James activity and replacing that plus quite a bit with Haynesville Shale. So, is it 400 or 450? It’s a little early for us say. But I think that’s a fair enough range for people to kind of be looking at in terms of our ’09 program.
John Freeman – Raymond James
And is the majority of your acreage by the end of the year on the traditional Cotton Valley, will that be held by production?
- To read the full transcript on Seeking Alpha, click here »
