Question-and-Answer Session
Operator
Thank you. (Operator instructions). Our first question comes from the line of Neal Dingmann with Wunderlich Securities. You may ask your question, sir.
Neal Dingmann - Wunderlich Securities
Scott you mentioned the budget for next year it looks like it will be down. Can you give us color as far as maybe at the same time the question you said that Spraberry or the Permian would ramp up? Trying to get a sense of the breakdown of the budget mix or just on a percentage basis and then obviously like your competitor I know Pioneer has some pretty ambitious plan to ramp up their Spraberry. Is your going to be as near as ambitious?
Scott Josey
Sorry if there was a misunderstanding. Our budget for next year we have not put that together yet. I know you know and as we’ve said before the way that we do our budget is that we strive to live within our cash flow. We are in our budget process as we speak. We will be meeting with our Board here shortly, and at that time, probably about early to mid-December, we will have a call with, with the market to bringing up speed on where we stand. What we had done this year was it, as I said earlier in the call was we were focused on liquidity, and we try to keep our capital spending well below our cash flow.
We have the ability to do and then just later in the year we decided to increase our spending which we announced on the last call and that those dollars $40 million to $50 million went to two places. It went into the shelf, where we were (inaudible), where we have had success, we are going to drill the well at SMI 150, here shortly. And then we began ramping up our activities in the Permian. This year, for 2009, we spent less in the Permian than what I would have liked, but with a focus early on of trying to create as much liquidity as possible, it was really an easy place to cut some capital, and also in the Permian, as well as in other areas, we were expecting costs to come down and we are willing to wait until that occurred. Now the costs have come down and commodity prices have come up. We have begun spending more dollars and I can see that continuing into 2010 and hopefully beyond.
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