Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will take our first question from Scott Hanold, RBC Capital Markets.
Scott Hanold - RBC Capital Markets
Good morning.
Harold Korell
Good morning.
Scott Hanold - RBC Capital Markets
Can you talk about the 60-acre downspacing? How do you think about this? Obviously you won't obviously go into this. You are pretty early, so your long-term development strategy isn't, I guess lack of better term isn't sort of compromise. So can you give us a sense of how you are approaching this to the 60-acres and what sort of adjustments you are making in case that you think on the plain 40 acres is the right number?
Steve Mueller
Scott. This is Steve. What we are doing is really we have targeted somewhere between a 150 and 200 wells. That will have some kind of downspacing consideration with them. First path is basically splitting what we did in some of our pilot areas which is roughly that 60 acres. Part of that 60 acres will be drilling between wells we have drilled in the past also. So we can see what happens between older producing wells as compared to just drilling them straight up new.
And then, we will continue the downspacing until we run into a situation where we are comfortable that we figured out what the right spacing is. So, we just keep working it down from there, but it is a couple of hundred wells work, which is between four to six months of drilling. And then to get production, you are probably looking this time next year before you really see results. But that we can say here is what it looks like the right spacing for certain areas.
Scott Hanold - RBC Capital Markets
Okay, at 60 acres and/or even if you were to think in terms of 40 acres at this time, is there any major change in the way you drill your patterns right now is this.
Steve Mueller
Not a significant change. 60 acres would just be splitting what we did in our pilot area. We were roughly 110 acres in the pilot area.
Scott Hanold - RBC Capital Markets
Okay. Okay, got it. And my follow up question, maybe for Greg. When you look at our cash position, obviously it is over 400 million, very strong at this point.
You did have, for accounting purposes, book the provision for the AMT. When that gets paid out, would that be sort of an early '09 event and would that be a reduction to cash or is that already accounted for in your current cash position?
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