Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Lear with Sidoti; please proceed.
Mark Lear - Sidoti & Co.
Good morning, a very good quarter.
Norman Swanton
Hey, Mark thanks.
Ken Gobble
Good morning, Mark.
Mark Lear - Sidoti & Co.
Just in terms of the production guidance, and where you are in gas production right now, I guess Ken if you could give me an idea of what’s going to happen in the fourth quarter, that we’d get a decent ramp in production on the gas side?
Ken Gobble
We are expecting prices to firm up as withdrawal kicks in. Right now, especially through the injection season, we were seeing significant production, show facts on some of our non-operated properties outside at the Atlantic Rim.
Mark Lear - Sidoti & Co.
I guess also thinking about prices looking better as you look out in to ?10, what are you thinking in terms of possible hedge additions and locking in basis now?
Ken Gobble
I think a good portion of that will really depend on when the withdrawals start hitting the storage numbers. Looking at the strip, I think there’s defiantly some strength as you mentioned in 2010. I would expect that we will grow into that as prices tend to firm up Mark.
Mark Lear - Sidoti & Co.
Congratulations on really getting the cost down. I guess if you could kind of give me an idea of how LOE and G&A kind of will shakeout through the rest of the year, maybe terms of annual declines. I mean is that kind of stick looking out into the back half?
Ken Gobble
I think so. I think you can use these numbers pretty comfortably for the second half of 2009. With some exception, I did mention that we’re positively impacted by lower prices on taxes of course.
Mark Lear - Sidoti & Co.
Right.
Tim Larkin
On the G&A side; Mark, this is Tim. Again, I think we’ve done a very good job of reducing G&A on all fronts, primarily reducing headcount and some voluntary reduction in salary. I think that we expect to continue to keep G&A in check for the balance of the year and continue to look for ways to reduce it.
Mark Lear - Sidoti & Co.
And I saw you guys did not report pricing including realized derivative gains, I was wondering if you have that handy.
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