Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Scott Hanold - RBC Capital Markets
Scott Hanold - RBC Capital Markets
Could you remind me and I think you’ve addressed it before but given the change in the spending plans, and the flexibility, looking at the Century pipeline, when that does get up and running, are you going to have volumes that are going to be ready to flow on that to increase your net production, are you going to start to drill into that as we get closer, how should we look at that.
Tom Ward
We will start in 2010, actually in the last half of 2009 we start adding to the volumes that will fuel Century in 2010, but the majority of the ramp up is in the first half of 2010.
Scott Hanold - RBC Capital Markets
And so you will be actively drilling high CO2 wells to prepare for that coming on line, is that sort of the thought process here.
Tom Ward
Its most of the wells that we drill, in fact six out of the eight rigs we have working today are in the high CO2 area.
Scott Hanold - RBC Capital Markets
On the Big Canyon well, with the fact that I guess its not fractured, like you see in parts of the Pinon, is that something you can identify with seismic or when you say if you would have had the seismic you may not have drilled certain wells. What aspects do you see there that help direct where and how you drill.
Tom Ward
We actually, I can explain that a couple of ways, inside the Pinon field itself we have wells that aren’t fractured very well. So its not that unusual even though we have wells that average 7.5 Bcf per well. We have four wells and then we have very good wells and this well on a log characteristic looks like it would be a well in the Pinon field however it did not have access to fracturing. That doesn’t mean that you couldn’t drill another well in this same field and have fracturing within it.
It gives us a lot of hope in that aspect to answer your first question, as no you can’t tell off seismic whether you’re going to have fracturing or not. You can see where you are in relationship to faults and you can tell whether you have the zone in place or not but even down to trying to depict whether you have fracturing in a well, we can’t do that.
- To read the full transcript on Seeking Alpha, click here »



