Question-and-Answer Session
Operator
Your first question comes from the line of David VanTreuren – Moloney Securities.
David VanTreuren – Moloney Securities
I have a number of questions but I’ll just ask a couple. We had a nice increase in reserves you said 73 billion. What would you suggest that if you can attempt to guess the end of 2008 reserve figure might be?
Richard Dole
I guess that would be way beyond my authority for forward looking information. I will tell you that the ultimate recoverable reserves for these wells because it’s a fairly new play are areas for significant improvement. While its way to early to take the results of the drilling program in 2007 and extrapolate it what we are finding is we are meeting in some cases typically in exceeding the expectations that we had based on what the reserve estimates were based on. I can’t give you a real answer but I can tell you we are headed in the right direction.
David VanTreuren – Moloney Securities
What would you say the daily production is now and what percent are we hedged at this point?
Kurtis Hooley
The current production we are seeing now is the 9.2 Mfc per day gross on the wells that we have up and running which is the original 14 plus the seven new drilled this year. We did have an opportunity to initial the productions on six of the new Pod B’s that were 3.3 Mfc per day so right now we are flowing about 9.2 to the sales line.
David VanTreuren – Moloney Securities
What about Pinedale, you’re not including that?
Kurtis Hooley
That does not include Pinedale. Pinedale right now we are seeing approximately 3.3 Mfc per day out of both Pod B and Pod C. That’s the latest numbers we have. Obviously we are not an operator in that area, but that’s the latest estimates we’ve got off a nomination to date. Right now off current, the December production we were hedged 64%. I think that’s probably relatively close on a net basis and that’s about where we are at on the fixed price contracts.
David VanTreuren – Moloney Securities
When do those hedges come off?
Kurtis Hooley
Those hedges expire various terms, the first one expires in May of 2009 and the last one expires October 31, 2009.
Richard Dole
We did do, I think it’s in the financial statement we did in effect take some of those fixed price contracts off between what?
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