Question-and-Answer Session
[Operator Instructions]. Your first question comes from the line of Michael Jacobs from Tudor, Pickering, and Holt. Please proceed.
Mike Jacobs - Tudor, Pickering, Holt & Co., LLC
Thank you and congrats on the renewed focus on differential advantage basins given the current commodity price environment. I have a few questions for Michael. Recognizing that you still have to take your recommended budget to the Board for approval, I would like to take through your assets and get a better understanding of how '09 shapes up and implications for 2010 growth. Starting out East Texas, you previously alluded to, slightly less than half year of CapEx having a run rate of $75 million, and when we think about your inventories about 100 new drills and about 75 recompletes, how should we think about the revised 2009-2010 drilling plan in terms of recompletes and new wells and kind of what are the new CapEx implications?
Michael Duginski - Executive Vice President and Chief Operating Officer
Yes I understand the question, and what I would tell you is the acquisition... our acquisition view of the East Texas properties, we had a three-rig program. We were reducing from a five-rig program that the seller was running at, and we were going to reduce to a three-rig program. So this will slightly reduce our growth rate. But what I would say is offset by the number of completions that we have that our inventory right now which are 17... which will be 17 by the end of the quarter and then we have a number of recompletions also.
So even though we are not drilling, we should be able to keep production pretty well on track with the acquisitions... with the acquisition view, and we have the upside potential of the two horizontal wells we plan on drilling and those were not in our acquisition view.
So I think at worst case, Michael, I think that we would stretch our peak out maybe a year or so farther than what we had forecasted in the original acquisition. Ticking down the large projects that we have, I would say based on our capital project... capital expenditures in the diatomite project you should see that projection of production growth pretty much on track. We are going to fund that project, and we are going to pace drilling development much closer to the facility and infrastructure development. So even though we'll have a slightly lower spend in '09 we should be on track on production.
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