Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tom Gardner - Simmons & Co.
Thomas Gardner - Simmons & Co.
Following up on your comments on targeted asset sales in your 2010 capital allocation plans, assuming the M&A goes through sometime around year end, what does your program look like going forward? What are your focus areas beyond the horizontals and the Haynesville and Granite Wash, are there some other areas you would be focused on beyond those two?
Craig Clark
Yes, and of course our guided assumptions for 2009 didn’t occur to asset sales and it looks like we are going to make some more progress in ?09 or make some hay, but clearly embedded within East Texas, North Louisiana is not just for Haynesville, it’s the general overall program verticals and horizontals, specifically to Cotton Valley and Travis Peak.
So, you get the four or five multi zone. You’ll have the same thing going on with all the other zones, like in the Morrow, the Cleveland and in the Texas Panhandle on the top of the Granite Wash. So you’ll be kind of doubled up in those areas, you’ll just probably hear about the higher rig drills in the Haynesville below the Granite Wash.
Then the Permian which is getting some more capital now, which is oil and some gas, but mainly oil and then the Canada would be your, I’m going to call it conventional oil, because we are not heavy oil players in Canada, the Foothills and down in South Texas, a little bit, most notably Katie which would be Wilcox. Right now everybody is giving money to western and eastern, and you would probably double up in those areas and then add something to a lesser amounts in Canada and the Foothills and in South Texas and the Wilcox.
Thomas Gardner - Simmons & Co.
That’s helpful and jumping over to the Haynesville, how much of your acreage on the Texas side of the border do you view as currently perspective in the play?
David Keyte
I would say that we’re probably at least 80% of our acreage on the Texas side as perspective. I think that we had some disappointing results on the Northern portion of acreage, and we’ve moved further away from that. However, I think that one of the things that remains to be same on the Texas side of the play is four other members of the Haynesville are going to ultimately be productive. In that, some of the Bossier section has not been fully tested yet.
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