Question-and-Answer Session
Operator
(Operator instructions)
Clayton W. Williams
If there are no?
Operator
First question comes from the line of Greg Brody with JP Morgan, please proceed.
Greg Brody – JP Morgan
Good Afternoon, guys.
Mel G. Riggs
Hi, Greg
Greg Brody – JP Morgan
Hi, how are you? I’m just going to run through a few questions, get along until somebody gets to the line. Just in terms of reducing leverage, do you have actual number that you are targeting?
Mel G. Riggs
I don’t know what to say, we really have a target our plans or to, we have been actively trying to market some properties that the level that would reduce significantly our bank debt, and we actually, we sold some assets last year, well over $21 million or so and we are continuing to look at that. But that’s not our target; our plans are to try to deliver the company as far as that from the bank (inaudible) 2008.
Greg Brody – JP Morgan
Okay. Do you have in terms of your price tax for your assumptions, what delay on natural gas prices are you currently using?
Mel G. Riggs
We have been, we can run in our internal projections on about gas prices which have moved dramatically here recently we are running them for ’08 its $7.50. Obviously, we are going to re look at that but that’s for run in our numbers and we are running them over about 90 million.
Greg Brody – JP Morgan
Now with the CapEx increase, do you expect any associated production?
Mel G. Riggs
Okay. We would and we will be updating our guidance, we will not, well we will update guidance after the first quarter and we will incorporate production increases, the rate of development drilling at that point of time. Currently our guidance, it’s in out in the public domain it was probably backed in January and that guidance did include, include production from development activities. And but it will be updated, we are increasing our CapEx budget. Of course, we have had, we have got higher product prices that helping us to do that too at this point.
Greg Brody – JP Morgan
Okay. And then you mentioned that the assets sales in South Louisiana are you selling another package besides the initial in that was, or you?
Mel G. Riggs
The initial package that was offered of back in the summer of last year, did not happen, but we are continuing to talk to some companies about potentially selling parts of their package.
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