Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of John Kang - RBC Capital Markets
John Kang - RBC Capital Markets
I guess the first question that comes to mind with your new CapEx program is what is your thoughts on maintenance CapEx and your thoughts on how you’ll fit your distribution for 2009, I was just going through the math and if I use $20 million as the CapEx number then you should have plenty to pay the $0.52. I’m just wondering can you do that or do you have to assume a certain level of maintenance CapEx when you figure out your distributable cash flow.
Hal Washburn
We do assume a certain amount of maintenance CapEx each year whether we spend it or not and so as the year goes on we will be tracking that. Hopefully prices will come up or service costs will come down and we’ll be able to increase our capital budget for the year. But we aren’t looking at $20 million as being a maintenance CapEx number, we’re really tying that to what we believe to be the right number given today’s oil and gas prices and today’s service costs.
John Kang - RBC Capital Markets
I guess as a follow-up should we assume its somewhat similar to what you’ve said in the past, the maintenance CapEx.
Hal Washburn
Yes I think so.
Jim Jackson
I think as a working assumption you should continue to use what we have said historically about our maintenance CapEx assumption.
John Kang - RBC Capital Markets
Do you have any early indications or estimates on your expectations for your borrowing base redetermination or is it just too early to tell.
Jim Jackson
At this point its too early to tell. That’s scheduled for an April 1 redetermination and our lead agent is doing their initial work. They continue to do that now so that process is close to I guess formally beginning but it has not started, its not been rolled out as far as we know to the broader bank group.
John Kang - RBC Capital Markets
And you don’t have an indication of what there price spec they may be using I guess.
Jim Jackson
Well every bank will ultimately use its own deck, I think frankly I think Wells in terms of determining their recommendation is, may still be considering that but if they have settled on one I don’t know, I don’t think we know what it is at this point.
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