Question-and-Answer Session
Operator
[Operator Instructions]. Our first question comes from Mr. Roger Read. Your line is open.
Roger Read - Natixis Bleichroeader
I guess my questions, you talk about the Danny and Phoenix fields both bringing on significant production in 2010. Are you still cautious about providing what you think the right volume expectations would be for those fields? At least if not a particular date for them what your target would be once they are up and running at full levels?
Robert Murphy
Well, we did mention in our August update that the combination of both fields were approximately 100 million cubic feet of gas equivalents per day.
Roger Read - Natixis Bleichroeader
Right, I guess...
Robert Murphy
For both of them. And it breaks out to be about 10 and six. 10 for Phoenix and six for Danny on a barrel of oil equivalent.
Roger Read - Natixis Bleichroeader
Okay.
Robert Murphy
We have stated that before also.
Tony Tripodo
There is no change in that forecast, right, Robert? And...
Robert Murphy
No. No, we don't have...
Tony Tripodo
It's important to point out that this is mainly oil production as well.
Robert Murphy
Yes, yes, that's why I went to the 10 and six . That's 80% oil, Roger.
Roger Read - Natixis Bleichroeader
I mean, I think about your historical sort of hedging approach, which would be approximately half of your production. Obviously, if you already hedged 40 Bcfe equivalents for 2010 and I look at this year's production, it's not going to be much over that 40. It's reasonable to assume there is a pretty good step-up here. Danny and, obviously, by the first quarter and Phoenix, let's say, by midyear.
Robert Murphy
Yes.
Owen Kratz
Roger, we're allowed to hedge up to 75% by internal policy not to 50%. So there is an awful lot of room to add additional hedging, but we're cautious. We also have restrictions on how far in advance of first production we are allowed to hedge. So that's why we need to get closer to the Danny and Phoenix start-up dates before we start considering layering in an additional layer.
Roger Read - Natixis Bleichroeader
At least the first part of the year, the expectation has got to be the Bushwood fields coming fully online through that Sea Robin line. Correct?
Robert Murphy
Yes and Danny coming on.
Roger Read - Natixis Bleichroeader
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