Question-and-Answer Session
Operator
(Operator instructions) And the first question comes from the line of Ron Mills from Johnson Rice. You may proceed.
Ron Mills – Johnson Rice
Good morning, everyone. A couple of questions actually, the start-up in Canada if you don’t mind -- Jim, can you say again when the Great Divide project started up prior to 2008, the initial production, so I can get a sense in terms of if Algar Lake is similar, when we could expect startup at Algar Lake?
James Rubin
The Great Divide project began steaming in September of 2007. It was declared commercial in March of 2008 and it’s shown as high as 9,000 barrels per day of production.
Ron Mills – Johnson Rice
Is that a shorter lead time from steam to reaching nameplate capacity or is that -- what should be expected?
James Rubin
It is what was shown by that project.
Ron Mills – Johnson Rice
Okay. And another one for you, any ideas – I know you all swapped engineering firms up in Canada, assuming that you all are having another resource evaluation done like you did last year. Should we expect something in terms of similar timeframe for an updated resource potential?
James Rubin
I think we need to put everything in the context of our new management. We are very excited about bringing our new management on and we are going to have to have them involved in all of that, including the resource (inaudible).
Ron Mills – Johnson Rice
From your comments, it sounds like that – that could be sooner than later.
James Rubin
In terms of bringing new management on?
Ron Mills – Johnson Rice
Correct. Yes?
James Rubin
Yes.
Ron Mills – Johnson Rice
Okay. And Mike, for you, from a production standpoint, you walked through the July average, the first six days here in August, what production has averaged. How would you recommend we look at that, either for the remainder of the quarter or the year, does that include a lot of flush production from some of the recent Permian wells and the one Hackberry well are, given the five rigs in the Permian plus three more Hackberry to hook up. Would you expect that trend to continue?
Mike Moore
Yes. The current production obviously is very strong. It does include 450 a day from the new Hackberry well. We still expect to exit the year at 1.9 million to 2.1 million. I think you are going to see consistent increases quarter-to-quarter, possibly a 15% increase in the third quarter or the second quarter and then another 20% increase in the fourth quarter in our production. But you will see a consistent ramp-up as we bring on the new Hackberry wells, Permian activity, and also the additional wells we drill on West Cote.
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