Question-and-Answer Session
Operator
Your first question comes from the line of Mike Scialla of Thomas Weisel Partners. Please proceed.
Mike Scialla – Thomas Weisel Partners
Good morning guys..
Tim Marquez
Good morning Mike.
Mike Scialla – Thomas Weisel Partners
Can you give us a sense of what the competitive landscape looks like now for the Monterey, are you seeing any new entrants in what our acreage cost is looking like now?
Tim Ficker
Yes, I do not want to get into acreage cost, I will say they are certainly attractive compared to the other shales. We are seeing a little competition there, our team is definitely busy out there. There is still plenty of acreage to go but, yes, we are seeing some competition.
Mike Scialla – Thomas Weisel Partners
Okay and then in the $26 million plan, it sounds like that is if you go to loan, if you were not to get a partner, if you do get a partner, does that $26 million get redirected to other areas in the company or do you speed things up in the Monterey with drilling and buying additional acreage.
Tim Ficker
Yes, the plan right now is if we got the partner in, our net CapEx would go down but our drilling activity in the Monterey would go up by factor two to three times the rate but our tentative plans would be just to reduce our CapEx budget if we bring the partner in.
Mike Scialla – Thomas Weisel Partners
Okay, I did not quite catch it, I think you went over it, but the break out of that $26 million it sounds like it was for five wells including quarrying and was some of that boasting for additional acreage as well?
Tim Ficker
That would be just for the development work, it would not include the land cost but yes, $26 million will be for five wells and try not to overanalyze that too much because, you know the first wells are going to be quite a bit (inaudible) will ultimately will be teared down but, yes, the initial wells are precisely $26 million for five wells.
Mike Scialla – Thomas Weisel Partners
Okay, just one last one for me, I will get back in the queue, the Sockeye the first frac there, how are you planning on designing that, is that going to be just a single stage or multi-stage, is that going to be a two horizontal or just a directional well?
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