Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Michael Hall – Stifel Nicolaus.
Michael Hall – Stifel Nicolaus & Co.
Just some questions on your current approach to the market, I mean, there's some big packages that have changed hands in the Permian, and the Permian-like areas in a somewhat recent term and then there's a pretty large package out there at this point. And then in the past you've always kind of been more of like you say, kind of singles and doubles and not necessarily looking at the real large packages. Is there any change in appetite on that, as we are in kind of a trough-type setting for the industry, and maybe see anything out there that peaks your interest in taking a bite at something pretty large?
Cary Brown
Well, Michael, we look at all those packages and I would say we've never wanted to work harder than other guys and only do small deals, but at our core we're value guy and sometimes on those big marketed packages you'll see more reserves than we see or we see a risk. We'll risk weight some of those reserves maybe differently than other guys will.
We've never not wanted to do the big deals and we've always looked at them. It kind of feels like an environment where you might do some bigger ones because of, where particularly the [GATNE] guys are still going to be in somewhat of liquidity price, we're not concerned about borrowing base redetermination of fault boring because we're primarily oil. If we were primarily gas I think we'd have a different take on what that situation is going to look like. So it may be a situation where we can knock one down.
Michael Hall – Stifel Nicolaus & Co.
Okay, appreciate the color there. And then just if I may one more, looking at the cost outlook, you made the comment in there Steve, sounds like maybe the costs you think are bottoming here. How long do you think we can kind of keep these low levels of costs in terms of duration, a couple of quarters? Or do you think we'll make it all the way into maybe 2010 or so?
Steve Pruett
Since I made a commitment for Paul Horne who's responsible for production costs – I assume you're talking production costs – I'll turn this over. He's the real star. Paul's our EVP of Operations.
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