Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mike Jacobs - Tudor, Pickering, Holt & Co.
Mike Jacobs - Tudor, Pickering, Holt & Co.
I hate to start things off with a tedious modeling question, but I've got a quick one for Phil. If I start with the cash flow statement, it looks like you received $233 million in proceeds from Eni while $47 million was attributable to a gas purchase commitment. Is that just an accounting treatment or are there additional liabilities that were assumed to get the purchase price up to $280 million?
Phil Cook
Well, we got $280 million in cash and was assumed the liability that you just mentioned for the gas purchase contract, so that's the accounting for it.
Mike Jacobs - Tudor, Pickering, Holt & Co.
Can you just elaborate a little bit more on that?
Phil Cook
Eni's portion of gas from these assets we're buying for the next 18 months. So through the end of 2010 we're buying their gas at the fixed price of $8.60.
Mike Jacobs - Tudor, Pickering, Holt & Co.
On the CapEx side you spent $325 million in the first half and you plan on spending another $216 million. Can you help us reconcile where the additional $40 to $50 million is coming from versus the $500 million in the most recent presentation?
Phil Cook
Are you talking about the difference between $500 million and $550 million?
Mike Jacobs - Tudor, Pickering, Holt & Co.
That's right. Is that the gas purchase agreement or is there another way to think about that?
Phil Cook
No. We're spending more on putting pipe in the ground and building facilities at Alliance, for one place. But from our perspective, being within 10% of budget is pretty close.
Rick Buterbaugh
The $50 million increase is really all dedicated to our Texas properties and to drilling, completion and a little bit of gathering system related to those properties.
Mike Jacobs - Tudor, Pickering, Holt & Co.
And then in Canada, can you break out 2010 spending for Horseshoe Canyon versus Horn River?
Rick Buterbaugh
We're currently in the process of going through our capital program and expectations for 2010. We'll announce those results at year end or what our 2010 budget is at that point.
Phil Cook
And certainly at that point we can break out the exploration and spending in Horn River versus Horseshoe Canyon. We do expect Canada, however, not to borrow this year or next year with regard to capital program.
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