Question-and-Answer Session
(Operator Instructions) Your first question comes from David Heikkinen with Tudor Pickering.
David Heikkinen - Tudor Pickering
Hi, Jim.
Winston Talbert
Hi David.
David Heikkinen - Tudor Pickering
Just a quick question thinking about your CapEx for 2009. Can you walk through the breakdown of the increase in spending between Haynesville wells acreage and exploration?
Winston Talbert
Haynesville what acreage?
David Heikkinen - Tudor Pickering
Scott in his prepared remarks said there was an increase in Haynesville wells, there’s an increase in acreage and an increase in exploration and you commented that you’re spending some more money in California as well, so just trying to get in order of what is the breakdown.
Winston Talbert
We’ll spend more money in California in 2010. We spent about $32 million on acreage, some core acreage, right around some wells that were $25 million a day with Chesapeake. We did participate probably in $250 million worth of submittals, so we pulled off a few acreages there.
The rig counts moved up about three average rigs for the year and when you say three average rigs, the number of rigs I think was probably five drilling rig ahead, but its half years and there’s some math involved for the number of rigs. Probably 28 rigs versus 25 rigs what we earlier had projected. Sidetracking Friesian is not an expensive experience, so sidetracking that and also the Blueberry Hill and Davy John’s projects were not part of our budget.
David Heikkinen - Tudor Pickering
Northwood and Rickenbacker were already part of the budget?
Winston Talbert
Depends on which budget you’re talking about David.
David Heikkinen - Tudor Pickering
The $1.05 billion.
Winston Talbert
No we added those as well.
David Heikkinen - Tudor Pickering
So, total exploration sounds like the majority of the increase then, those rigs are net.
Winston Talbert
That’s right.
David Heikkinen - Tudor Pickering
Then on the production side, can you give us a breakdown of production in the second quarter, just averages for the quarter and that’s it.
Winston Talbert
Well, averages by asset?
David Heikkinen - Tudor Pickering
Yes, exactly.
Winston Talbert
We have too many assets, Dave. Let’s look at it this way; looking at where we’ve had strong production; obviously in the Haynesville, obviously at Flatrock we’ve had strong production. One of the areas we’ve had good production has been in the Madrid field and so forth.
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