Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question comes from the Michael Bodino of Coker & Palmer. Please go ahead.
Michael Bodino – Coker & Palmer Inc.
Good morning, guys.
Roger Parker
Good morning, Michael.
Michael Bodino – Coker & Palmer Inc.
Just couple of follow-up questions. I know you've had a reduction of drilling base in the Piceance Basin, how does that impact your allocation of rigs going forward? Are you still going to ramp up the rig count there as previously described?
Roger Parker
We reference in the press release that it is still our intention to go to eight rigs by early '09 – first quarter of '09. What we're doing right at the moment is trying to appropriately manage the number of rigs in operation between now and when additional pipeline capacity will be available. That additional pipeline capacity, also referenced, will be in place and should be available essentially right after year-end. So, without saying exactly when we will put additional rigs in operation, we still do intend on going to eight as we enter 2009.
Michael Bodino – Coker & Palmer Inc.
So, do you think, given the reduction in drilling basin in additional rigs that drilling 200 wells in the Piceance Basin next year is achievable?
Roger Parker
Yes. I think it's very achievable.
Michael Bodino – Coker & Palmer Inc.
Okay. On the overthrust. I know this is your last earning well on your 3-well commendment [ph] there, what happens going forward if this is un-success well? Do you continue to prospect or is this last one in the area depending on how Parowan test?
Roger Parker
No. I think, we've got a lot of hope for the entire area. And one of the things that I would point out is that the operation that Wolverine and Occidental Petroleum have going to the Northwest which is recently experienced and additional discovery, experienced a number of dry holes on separate structures after the Covenant field was discovered and before the Providence discovery was announced. So, we think that we obtained a very key piece of information when we drilled the Parowan well. That piece of information was the existence of Mississippi in oil all the way down on the very Southern end of our leasehold position and that gives us a significant amount of continuing hope and interest in all of the leasehold that we have between the Parowan prospect and the Covenant Oil Field. So, regardless of the outcome on this next structure that we will drill, we will still have significant amount of interest in the project itself.
- To read the full transcript on Seeking Alpha, click here »
