Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from Roger Read. Your line is open, sir.
Roger Read – Natixis Bleichroeder
Good morning, gentlemen.
Owen Kratz
Good morning.
Roger Read – Natixis Bleichroeder
Thanks for the rundown. It’s pretty good. I was just curios. With the third party pipeline issues on the oil and gas production and what appears to be another reduction in CapEx for ’09, how much of that five is absolutely third party pipeline issues and how much of that 5 Bcf is – okay, you’re going to spend less, you’re re-fencing the E&P assets out?
Tony Tripodo
Roger, this is Tony. All of it is related to the pipeline issues. In terms of the lower guidance on production for the year?
Roger Read – Natixis Bleichroeder
Yes.
Tony Tripodo
Yes, it’s all related to the pipeline issues. So it’s really dependent upon when the issues get resolved. There is potential for us to beat the estimate, but I think right now it’s a safer bet to be within the range of 45 to 55.
Certainly if you look at first quarter production at nearly 12 and multiply it out, we’re safely in the range. So if that production comes on in the summer, we have the potential to beat it. But we’re also expecting that there will be hurricane disruptions in the Gulf of Mexico and that’s factored into our forecast for production. So if we have a light year for hurricanes, we are set up to beat the range of 45 to 55.
Roger Read – Natixis Bleichroeder
Okay. And a little more on that particular part of the business. Can you tell us what the Noonan field is doing now in terms of production? And we saw obviously the step up in the first quarter. Is it still the most affected – one of the most affected by the pipeline or is it basically getting on its run rate at this point?
Robert Murphy
Yes, it’s on at a restricted rate. And that is principally around 30 some odd million a day growth. And the pipeline that is – continually has more problems with it. That will allow us to ramp it up to that 100 plus million a day rate on a gross basis. So we’re disappointed.
We continue to work with the third party company any way we can with our assets, our ability. And we hope to see that thing pressure up and start flowing in August.
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