Question-and-Answer Session
Operator
[Operator Instructions]
We'll take our first question from Gil Yang with Citigroup.
Gil Yang - Citigroup
Hi. Can you talk about when Jenein Nord comes online and when Oooguruk comes online, what do you expect to happen to operating costs?
Scott D. Sheffield - Chairman and Chief Executive Officer
Yes, Gil. I mentioned Jenein Nord is expected to come online fourth quarter, first production and liftings could swing, it could be hard to determine exactly about liftings but our lowest cost operating projects, you mentioned two of the three that are coming on and that's Tunisia, Oooguruk, and South Coast Gas.
When those three projects come on, it should be driving down operating costs somewhere between 5% to 10% as a company result. Obviously when the VPP rolls off we'll see another 10% drop, so we do see our operating costs coming down significantly with those three projects coming on, followed by the VPP moving out over the next two to three years.
Gil Yang - Citigroup
Okay, so in the third quarter guidance doesn't have any of that yet?
Scott D. Sheffield - Chairman and Chief Executive Officer
No. South Coast Gas coming on at the very end of the third quarter so fourth quarter you'll see South Coast Gas and when Oooguruk comes on, Tunisia come on, you'll see maybe some in late fourth quarter but more first half. You'll see a bigger impact in the first half of 08 with Oooguruk, Tunisia, and South Coast Gas with very low operating cost.
Gil Yang - Citigroup
Going to Raton for a moment the new acreage you've got, could you just remind me where the acreage was that you had problems in terms of the I think you had volcanic intrusions if I recall?
Scott D. Sheffield - Chairman and Chief Executive Officer
Yes. The volcanic intrusions were to the north. The very north end of the acreage when you look at our map. This acreage is right adjacent to XTO's acreage, so the acreage that we picked up was right adjacent to XTO, so if you put a little circle around our acreage and the acreage from Petro Gulf that's XTO.
Gil Yang - Citigroup
Okay. With the Barnett, could you talk a little bit about how you got that acreage, how much you paid for it, what's your investment in there currently?
Scott D. Sheffield - Chairman and Chief Executive Officer
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