Question-and-Answer Session
Operator
Ladies and gentlemen, we will now begin the question and answer session. (Operator Instructions). One moment please for our first question.
Your first question comes from Joe Allman – J. P. Morgan.
Joseph Allman – J. P. Morgan
Yes. Good morning, everybody. Hey, Richard, you talked about the impact of the change in year-end pricing on the reserves for Main Pass 299. So overall for the company what was the impact on the change in reserves starting off with the revisions? I mean, it looks like you just had a small net revisions, so it seems like maybe you had kind of a decent size positive revision that offset some of the negative revisions.
Richard C. Adkerson
We did and that was the point we wanted to make because the Main Pass was obviously a significant negative revision. The positive revisions really were spread among a large number of properties and principally based on production history. The fact that, well, we went into our properties with significant probable or possible reserves. A lot of that had to do with the way reservoirs performed. So we had the negative revision cost by prices at Main Pass that was offset by really a group of smaller but positive additions from other properties based on performance.
Joseph Allman – J. P. Morgan
Okay. Do you have handy the total negative revision that you had for the company?
Richard C. Adkerson
Well, let’s see. We have it here, but outside of Main Pass there was nothing that approached that. You know, it looks like 10, 13, maybe 15 BCF of total. Total negative.
Joseph Allman – J. P. Morgan
Okay. Gotcha. Okay. And then in terms of the additions, any sense of the, you know, like, the impact on the lower pricing on the additions. I imagine that you weren’t able to add as many reserves because of the lower prices versus what you would have added at 2007 year-end price levels.
Richard C. Adkerson
Well, most of the additions came at Flatrock. And because of the, pricing affects properties like Main Pass where you have high lease operating expenses in relation to the selling price of the properties. With Flatrock, because of the significant volumes, the average unit lease operating expenses really are not a limit, they’re not limit to reserves. So really prices wasn’t a major consequence there. It had to do with our drilling, the success we had with drilling.
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