Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from Mark Lear of Sidoti. You may proceed.
Mark Lear - Sidoti
Good morning.
Norman Swanton
Good morning, Mark.
Tim Larkin
Good morning, Mark.
Mark Lear - Sidoti
Just wondering, I’m sure you’ve been thinking about Townlot and kind of thinking what the plan looks like in Wilmington in terms of your drilling activity?
Tim Larkin
I’m sorry. Mark, what was the question?
Mark Lear - Sidoti
In terms of what kind of development plan you think you’re going to be executing out there in 2010.
Tim Larkin
I think, Mark, we’re going to start out by – we’ve identified approximately 12 target drilling locations and we’re going to start out by drilling those wells, analyzing the results and take it from there. As far as full year 2010 CapEx guidance, we’ll probably come out with that something in the beginning of 2010.
Norman Swanton
Ken, do you have anything to add to that or is that –
Ken Gobble
Well, not really, our staff out there has been working hard on a drilling inventory. We’re trying to develop approximately 54 strength prospects aimed at the horizontal type strategy that we intend to employ. I would think that we would like to see the results from the Tar development that Tim mentioned and really see what the balance of 2010 looks like before we really start going hard and heavy with CapEx out there.
Mark Lear - Sidoti
Just I guess comparing the two the Tar horizontals versus the Ranger’s sinusoidal project, how do the project returns compare between the two?
Ken Gobble
The sinusoidal project development is a little bit more expensive compared to the Tar wells. Those Tar wells are going about 1.5 million the last ones we drilled at. I hope that we can bring that down a little bit with the decrease in service costs that we’ve seen in the last few quarters. I would expect that sinusoidal to probably go somewhere in the $2 million range and of course that’s still a water flood type development strategy. So we will have some injection well expense on top of that. As far as [EURs] on the wells they are very similar. Max rates on the sinusoidal type we are modeling in that 60, 65 barrel peak range. Of course, I would expect that the – because the Tar’s more closely related to primary production and the sinusoidal wells would be more of a water flood style development, I would expect that the finds on the sinusoidal to be a little flatter than the Tar wells.
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