Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from John Freeman of Raymond James.
John Freeman - Raymond James
Good morning guys. The first question I have got on the Colombia River basin, you guys are raising the CapEx a little bit here despite the delaying of the completion activity in the Piceance. It is stated that it is because of the additional unexpected cost on the current Gray well on the next confirmation well you hope to drill. Can you say what the confirmation, what you are putting in the budget for that cost with AFB on it?
Kevin Nanke
John, this is Kevin. I think, included on the CapEx is approximately $5 million to initiate activity on that well. The total AFB is probably somewhere in the order of $25 million dry hole cost.
John Freeman - Raymond James
Okay, great. On the Piceance, can you quantify if there is a certain price where you would restart the completion activities?
John Wallace
John, this is John. Based upon the CIG strip you get the 375 on the CIG minimum economic thresholds in the company has been met heading into the season. There is a lot of uncertainty in the pricing but we will be monitoring that. But it is pretty much where we believe it becomes economic for completion and drilling.
John Freeman - Raymond James
Okay and you mentioned there is probably about a 40% reduction in completion cost. Can you just estimate what you think that completed well cost could be in the Piceance?
John Wallace
I would say there is probably at least a 40% reduction in completed well cost and our completed well cost are running about 1.95 million at the end of 2008.
John Freeman - Raymond James
So, if you were to like restart the drilling program, drilling completed well, what would you estimate the cost in the Piceance?
Kevin Nanke
You can assume $1.4 million. Once you start up this process and really begin getting hard bids I expect that number to come down from there. But that is an initial target.
John Freeman - Raymond James
And then last question and then turn it over to somebody else. On your acres that you have at the moment in the Hingeline or Paradox you kind of shelved for the moment, are there any lease expiration issues we need to worry about on those?
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