Question-and-Answer Session
Thank you. [Operator Instructions]. We will now begin question-and-answer session and go to the first caller. Our first question will be from Brian Singer of Goldman Sachs.
Brian Singer - Goldman Sachs
Thank you. Good morning.
Randy Eresman - President and Chief Executive Officer
Hi, Brian.
Brian Singer - Goldman Sachs
When you look at the combination of the natural gas strip with the improved results you are seeing in the Montney, Amoruso fields particular, how do you think about the value proposition in buying back stock and increasing dividend with free cash flow versus increasing activity levels. Is there a scenario where you would increase your activity levels and budgeted 2008 as opposed to just looking ahead to 2009?
Randy Eresman - President and Chief Executive Officer
Well Brian, we've answered this question, I guess the same over and over again. We think we’ve found the right balance in the combination of the sustainable growth strategy, and the use of share buybacks rather than chasing production goals. And we kind of feel that any incremental cash we’d be generating this year in excess of our expectations, we will be targeting some of that for additional share buyback this year, partially reducing debt. But it's a long time before the year is going to be complete and at this point we are still uncertain. As we plan for next year, we will think about the size of the program that we feel that we can undertake comfortably and we will target that pace of growth. We will reallocate capital across our portfolio where we believe the best returns are. So, it may be that the Amoruso property gets more of an allocation over the Montney. We are just at very early stages of doing that today.
Brian Singer - Goldman Sachs
Would you need a people reallocation as well or if you want to just allocate capital to drill more wells in some of these regions, it really is just a capital decision?
Brian Ferguson - Executive Vice-President and Chief Financial Officer
I think we are... we have got a pretty stable base of personnel and although we do move them to some degree where the activity levels are the highest. I wouldn't say that would be a substantial part of our plan.
Brian Singer - Goldman Sachs
Sorry I keep asking the questions, but I know that every time I think asked this gas prices are about $1 or $2 higher that last time. My last question is with regards to the BC shale, the Horn River play, you mentioned the road that you built and just general infrastructure-related issues, can you elaborate on that and the over what period of time do you think we will start to see more... actual real meaningful growth in production based on some of the infrastructure concerns that have been expressed there?
- To read the full transcript on Seeking Alpha, click here »
