Question-and-Answer Session
(Operator Instructions) Your first question comes from David Tameron - Wells Fargo.
David Tameron - Wells Fargo
A couple of questions, can I get a 2010 CapEx number to those that 13% growth? Can you give us the range or what you are thinking, you said you see the growth number out there?
Mark Papa
We haven’t finalized the CapEx yet and we will give that early next year. But the only thing I can give you is directionally our intention is to continue to run this company with the lowest net debt of any company in the peer group. So that should give you something to work with anyway.
David Tameron - Wells Fargo
It’s alright. Moving to the Bakken, a year ago at the conference you gave us some oil in place number, I think the number was 9 million barrels per section of oil in place, have you guys take any look at that or do you that have in front you as far as what that new number is oil in place per section up in the Bakken, what you guys think?
Mark Papa
Yes, the 9 million barrels for the core area is correct. So that number is the same. Just a little bit of description on the Bakken there. The core area which is about 90,000 of our 500,000 acreage, we still got a fair amount of drilling yet to do in that, but that’s pretty well a slam dunk.
The real question is we have technically related to the Bakken are out of the remaining 410,000 acres how much of that is productive in what we call the Bakken light. Now, our terminology Bakken Lite is equivalent to everybody else’s Bakken, because nobody else has a Core. And what we found is that we’re encouraged that it appears likely pretty significant percentage of our acreage is going to work in the Bakken Lite to the tune of this roughly 35% reinvestment rate of return.
Additionally, we’ve been fully aware that the Three Fork zone exists below of at least a part of our acreage and it’s probably productive, it’s about 40 feet below the Bakken in the core area and one of the questions we have was, well we’re getting such monster wells in the core area, are they fracs that we’re giving through the Bakken Core, are they actually draining the Three Forks also.
- To read the full transcript on Seeking Alpha, click here »
