Question-and-Answer Session
Operator
(Operator Instructions). And our first question comes from the line of Ron Mills of Johnson Rice. Please proceed with your question.
Ron Mills - Johnson Rice
Good morning, guys.
Fred Callon
Good morning, Rob.
Bob Weatherly
Hey, Rob.
Ron Mills - Johnson Rice
Just for you, Bob, a couple of just mop ups, can you go with the reserves again, I don't know if you broke it down between gas and oil?
Bob Weatherly
Just a second Ron, let me see. Okay, total reserves are 264 million cubic feet equivalent. I think that's 24 million barrels of oil and 116 million cubic feet.
Ron Mills - Johnson Rice
Okay. And then if you look at a pro forma for the sale of the 50% interest in Entrada, as I recall it's roughly a 15 million barrel equivalent decrease, as we look ahead to factor in 2008 reserves.
Bob Weatherly
Yeah. I think that's right.
Ron Mills - Johnson Rice
Okay. And then one more for you, on the first quarter interest expense can you walk through why that first quarter interest expense is so high relative to say even the fourth quarter addition charges in there for extinguishing the Merrill Lynch debt?
Bob Weatherly
Absolutely, that is the difference Ron, as we've anticipated closing, as Fred said, in the first quarter and the difference between the normal run rate that we've had for interest in the first quarter are the early extinguishment related costs.
Ron Mills - Johnson Rice
And what are those costs and are those buried both in the cash and non-cash component?
Bob Weatherly
The cash and non-cash. I think the non-cash is about $6 million and I think the early the cash part is $7.5 million or so.
Ron Mills - Johnson Rice
Okay, great. And then over your $180 million capital budget, how much can you walk through Entrada, Habanero, Medussa and shelf in terms of how much you plan to spend in each of those areas?
Bob Weatherly
I think the easy, well first at the macro split if you take the $180 million, I think that's Fred gave you, round numbers Entrada is $120 million to be spent in '08, remember we'll have some spend in '09, as we complete it. $60 million of difference. And about of that $60 million, probably about 40% to 45% of that is for shelf related drilling and development cost, the balance is allocated for the lease sale and normal capitalized interest and overheads.
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