Question-and-Answer Session
(Operator Instructions). Your first question comes from Joe Magner.
Joe Magner
Just a quick question on Q4 guidance, with no change in your plans for '08 spending, could you maybe discuss a little bit as to where those reductions are coming from?
Dan Dinges
I'm sorry, in which period, Joe?
Joe Magner
Q4 '08, it looks like guidance came down a little bit, just curious what the primary changes were relative to previous expectations?
Dan Dinges
It was a timing, Joe. We have slowed down our activity in the West on the Moxa as well as other initiatives out there. And then of course, we have also slowed down a little bit in West Virginia. Those are the two main areas that we have slowed up in.
Joe Magner
Then maybe a little bit more color in terms of '09. You've got an initial plan to spend $600 million which is well within cash flow. As things improve, or if things improve, as we get into the year, how would that progress? Would you put more capital into East Texas and the Marcellus or would you reallocate some capital back towards the West and Canada?
Dan Dinges
No. Joe, I think it's at this time, depending on how the market improves and where it improves, with the activity level in East Texas and the Marcellus. We have a number of areas that we might be able to reallocate which we referenced a little bit in East Texas. For example, if the horizontal effort works in the Minden area or the deep tests work in County Line, those two areas could see additional capital allocating and kind of an amendment to our program.
Also with this recent activity and well results, we're seeing in Trawick with the well, the vertical well, that has tested and in fact flowing in the line over 8 million cubic foot per day. We are evaluating this and maybe further capital allocated in that area. I might add also as a follow-up to your first question. The other slowdown a little bit in the last quarter, 2008. We did slide a little bit our expectations due to the lack of prop sand on the completions that we have scheduled in East Texas. So it's a shift versus an operational disappointment.
Joe Magner
Okay. And I guess the last comment leads into my next questions. We are hearing a lot about tightness for profit and frac sand. Is there anything you can do outside of what you're already doing to address that or to improve your access to supply or is this just something the whole industry is trying to grapple with?
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