Question-and-Answer Session
Operator
Absolutely. (Operator instructions). We'll take our first question from David Heikkinen with Tudor Pickering Holt.
David Heikkinen – Tudor Pickering Holt
Good morning, Mark. I had a question thinking about Horn River Basin, first production in July 2008 versus pipeline capacity. What should we expect in July '08 as you ramp up pipeline capacity into 2012? How does that ramp-up actually happen?
Mark Papa
Yes, in terms of production by 2012, we are slotting a rough idea somewhere in the range of about 120 million cubic feet a day by then. Somewhere between 120 million cubic feet a day and 150 million cubic feet a day. It's our belief that the majority of the production and aggregate from the Horn River Basin will really not start to come on until 2012 or later. Because we are on the West side of the basin, we get a little better pipeline access than someone on the East side, so we are going to get a bit more production likely earlier than others.
David Heikkinen – Tudor Pickering Holt
And all your 2012 targets, those are exit rate for 2012 that you mentioned on the gulf?
Mark Papa
The 2012 number, for example, like the Barnett number, that's a full year average number.
David Heikkinen – Tudor Pickering Holt
Okay. It's kind of mix and match like Manitoba that would be yearend exit rate that Canada gas then 120 would be an exit rate?
Mark Papa
That's probably a full year average on that one too. Yes, so the one that to exit rate is the Manitoba.
David Heikkinen – Tudor Pickering Holt
Okay. And going through each area can you talk about cost as far as first Barnett Gas Hill County and Western County and then Barnett Combo? And that's it. Thank you.
Mark Papa
In the Barnett gas, which would be the Hill Johnson County area, we are looking at $2.8 million well cost right now. In the Barnett Combo play, we are looking at something like about $3.1 million, and then in the western areas, it's considerably lower, it's probably about $1.8 million. So the western areas are more shallow that's why well cost is cheaper there.
David Heikkinen – Tudor Pickering Holt
And just one follow-up on the combo, is drills and wells and pallet into county as well as that part of the combo play or is that part of the western? Just trying to get an idea where the border is for combo versus western.
- To read the full transcript on Seeking Alpha, click here »
