Question-and-Answer Session
Operator
We will take our first question from the site of Neal Dingmann from Dahlman Rose.
Neal Dingmann - Dahlman Rose & Co.
Good morning, guys. Good quarter.
Al, can we refer from your comments as far as what you see in the market out there today and then with the comments over the debt that you must be more actively paid down versus being more inquisitive, or is that not necessarily the case?
Albert L. Reese, Jr.
I think you can interpret that as it will be directed towards a pay down, and this is Al Reese making this comment. Our credit agreement does require us to make certain payments depending upon the structure of the transaction. Our announced goal through the Home Sweet Home Employee Challenge Program that Paul just mentioned is a debt reduction program. But one of the goals that we want to have by the end of this year by 2009 is to be in a position where we can begin focusing with drop out or on more acquisitions. Leland has already talked about the expansion that we had at the Canyon Express area, the apparent high bids we have around the Telemark area. This is not something that we expect to monetize the entire company by any means. This is monetizing value, pieces of value, and then being able to continue to move on with the development.
T. Paul Bulmahn
But Neil, this is Paul, let me add. We have other opportunities we are looking at as well. And so on the acquisition front, things never are dead. In fact, they’re very much alive. There are a number of opportunities which come to us and at times, they are such great opportunities that we will do everything in our power to find the resources to be able to respond to that opportunity when it’s presented to us. And at this point, there are several things we’re looking at, all of which are quite attractive.
Neal Dingmann - Dahlman Rose & Co.
Okay, good answer. You both had mentioned, and I would agree with you as far as the number of assets that are potentially being monetized, what does that market feel like? I know obviously it had weakened not long ago after being quite strong in ’07. Does it feel like that strengthening again?
T. Paul Bulmahn
This is Paul. I think if you look at the recent transactions that have taken place, and I believe Scotia Waterous was involved in each of them, most recently the merger of [Buoy Dark] and Stone in the Gulf, I believe you’ll see that the values that were represented in that transaction were very strong, and we believe representative of what’s taking place right now on that front.
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