Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Blum - Wells Fargo.
Michael Blum - Wells Fargo
Couple of questions, one; can you quantify, if you can you mentioned you think you could see further cost saving efforts both on the OpEx side and G&A? How much further do you think you have to go?
Mark Pease
It’s all a function of what commodity prices do. If you can go around and look at our different operating areas, we continue to see cost reductions in the areas that are primarily natural gas. In the oil areas, we’re already seeing those costs level out. So, we still think we’ve got some room to go. It’s hard to quantify it, exactly what the percentage is. I know all of you guys are following rig count and whatnot. We’ve actually seen the U.S. rig count ticking back up. So, all those things impacted.
Hal Washburn
Michael, on the G&A side, this is HAL We are continuing to look at our operations and look at how we run the business, and we expect to have several more reductions in staff from the G&A point of view and we look at keeping all of the costs in control, looking all our vendors and keeping the costs as low as possible. So, we are continuing to do that, reduce the some additional reductions, but I can’t really give you a percentage at this point?
Michael Blum - Wells Fargo
Second question is just, in terms of the increase in CapEx that you’re going to spend this year; can you give us a sense of, where you’re spending that money and what type of activities? I know you said they’re oil focused, but are you actually getting drill wells or doing re-completion workover? Maybe a little more flavor there. Thanks.
Mark Peace
Yes, Michael this is Mark again. The work that we’ll beginning is all either on the West Coast or the East Coast or up in Wyoming. Those are where our properties are that are primarily oil producers, and it’s a mix. It is primarily re-completions and some additional workovers. We have added a little bit of money in there for drilling as well, but it’s essentially all focused at oil producers.
Operator
Your next question comes from Richard Roy - Citigroup.
Richard Roy – Citigroup
Just a question on the capital spending program, so you mentioned, because of better crude oil prices, you would increase your program, but that also reflects a certain level of comfort with the October broad-based re-determination?.
- To read the full transcript on Seeking Alpha, click here »
