Question-and-Answer Session
Operator
Our first question comes from Gary Nuschler - Jefferies & Company.
Gary Nuschler - Jefferies & Company
Can you give us an update on the development plan at [Daniel Boon]?
Jeffrey M. Durrant
We’re still working on that development. I expect that we’ll have some announcements here fairly quickly about full development but we’re proceeding full steam ahead.
Gary Nuschler - Jefferies & Company
And will that be a ?08 startup or more likely an ?09?
Jeffrey M. Durrant
More likely ?09.
Gary Nuschler - Jefferies & Company
Could you elaborate a little bit on what your exploration plans are in the deep water?
Jeffrey M. Durrant
Well, we don’t have any other wells right now that we’ve got booked for the deep water. Currently we are working at Green Canyon 82 to further evaluate the field seismic but we don’t have any plans for drilling other wells at Healey this year.
Gary Nuschler - Jefferies & Company
I thought you have one exploratory well outlined for 2008.
Jeffrey M. Durrant
Earlier in the year we put that on there as a contingency well for us. Currently, with rigs schedules we’re not going to drill that well.
Operator
Your next question comes from Jason Winkler – Wells Fargo. Please go ahead.
Jason Winkler – Wells Fargo
Just curious on LOE, it looks like it’s kind of reduced a little bit. Is that just basically, Kerr-McGee assets are pretty much accounted for for workovers or is there anything else that relates to that?
Tracy W. Krohn
I think there are several things. We are getting a better handle on the properties but cost of goods and services have came down somewhat as a function of the market; how long that hangs there will be a function also of commodity prices.
Jason Winkler – Wells Fargo
Obviously, Tracy you are staying offshore the whole time, but is there a situation which you would look onshore or is it just basically staying out there with the cash flow you guys are receiving?
Tracy W. Krohn
We’ve looked not only onshore but all over the world. The conclusion I keep coming back to is that Gulf of Mexico is a pretty good place to be if you want to make a bunch of cash. That don’t prevents us from going onshore and we certainly look onshore at areas around the Gulf of Mexico, and I consider anywhere from South Texas over to Alabama to be Gulf Coast onshore; that’s pretty similar to what we already do. That’s certainly a possibility. It’s not necessary a focus.
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