Question-and-Answer Session
Operator
Yes, thank you. (Operator Instructions) And our first question comes from Michael Blum and please state your company name.
Michael Blum - Wachovia Securities
Good afternoon. Wachovia. Can you guys hear me?
Frank Semple
Hey, Michael.
Michael Blum - Wachovia Securities
Hey. A couple of questions, one, given all the new projects and I would assume some of them are pretty competitively bid, can you give us a feel for what types of returns you're expecting across these different projects?
Frank Semple
Yes, Michael these organic projects come across the board on average they're in the mid teens as I mentioned. So these that we run our economics on de-levered rate of return basis so around 15% would be kind of a good way to model it.
Michael Blum - Wachovia Securities
Okay. And then just to clarify in terms of your hedge program, you said you do 90% of your hedging with your bank group. Is that correct?
Frank Semple
That's correct.
Michael Blum - Wachovia Securities
Okay so on that last 10% does that mean that you do need to post margin or letters of credit?
Frank Semple
Yes.
Michael Blum - Wachovia Securities
Okay and can you tell us where that stands today?
Frank Semple
On the LC?
Michael Blum - Wachovia Securities
Yes.
Unidentified Corporate Participant
There's a $20 million line of credit that goes to the support of that commitment right now, Michael.
Michael Blum - Wachovia Securities
Okay. And then just a last question, in terms of the Woodford Shale, can you give a sense geographically where PetroQuest sits relative to Newfield and are there any synergies there or potential other opportunities that you gain by being in the play with multiple areas.
Frank Semple
Yes, absolutely. We've try to keep this tight but I'll let Randy answer that.
Randy Nickerson
Those are code words for not talking for an hour I guess. Yes, given Frank's clear guidance to me PetroQuest is kind of up in the northeast part of the field where, you know, the Newfield is generally to the south of them and yes, it's an area of the field that we've looked for opportunities to get into because it's growing so much.
Other producers have done a great job up there as well and so we've wanted to get up there and now that we're up there and have extended our system up to connect to their system, we absolutely think there will be opportunities to gather other people's gas including Newfield; we've talked about moving up there. The other thing it does is there's a lot of gas out of there that's coal bed methane.
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