Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Ron Mills with Johnson Rice. Please proceed.
Ron Mills - Johnson Rice
Good morning.
Mike Moore
Good morning, Ron.
Ron Mills - Johnson Rice
I missed the first couple of minutes. So, I apologize Mike for your prepared remarks. Question just as it relates to the West Texas/Permian Bakken break down in your 2009 budget, of the $15 million, can you break that down a little bit further. How much would be towards the Permian and how much would be towards the Bakken?
Mike Moore
Ron, I'd say we're probably look at probably look about 50-50. That allows us to; we don't really have any CapEx spend to maintain production. So, that allows us to drill two wells in the Permian and at today's prices, it'll be least driven.
And when we go to the Bakken, we're kind of the tail on the dog up there because we are not operators. So, we respond to the proposals that are given to us and we've already seen signs of the proposals are going to start dropping off. So, it's our best guess at what we will drill in good areas.
Ron Mills - Johnson Rice
And you said how many wells in Permian would that allow for?
Mike Moore
We have a half interest in even at the $2 million per well, we spent about a million, we think those costs will be coming down. So that gives us room to drill seven wells easily. And that’s about what we think we’ll need to drill to maintain the leasehold of what that they are (inaudible) and so we will have some increase coming in from them.
Ron Mills - Johnson Rice
Okay. And I know the cost have increased out there leading to that, one of the reasons for the limited activity there. But in terms of wells completed, how have they performed, I just want to trying to see if we should read anything more into if they were performing as expected or below expected in terms of why [heard] the thought process behind the extensive analysis that you are giving right now?
Jim Palm
The reason we cut back is due to the drop in the price of oil, we just hate to give away those reserve at these low prices. If the costs come down, then we will go back to drilling there. But we’d like the way the wells have responded. We mentioned like the frac sand, we’ve been delayed in doing some of our completions.
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