Why aren’t there a lot of activities on the eastern part of the US?

There is slowness in that particular region because of logistics issues. Pipeline issues there are more extreme than they are in normal operating environments. The company is currently looking at that area and since there has been shale gas production in Appalachia in the past it can be economic.

Could you prioritize where you see the most growth coming from- out of Rockies, East Texas, Canada, South Texas, Mid-Continent and New Mexico or West Texas?

In the domestic side over the next two or three years, the company expects double-digit growth out of the Rockies. A big driver of that is going to come out of EOG development in the area of Utah. In the South Texas area this year, the company expects about 6% year-over-year growth and hopes to sustain the 6% production growth there. East Texas is supposed to get a growth of 9% this year, but the company expects next year to be much better as the East Branton Field will start its downstream processing in 2007. The Gulf of Mexico may have a decent production growth next year because it’s been severely curtailed this year. The other areas are not going to have an impressive percentage growth over the next 2 or 3 years with moderate production growth of 3% or 4%.

How much production do you have behind pipe waiting?

There are about 30 wells currently in the Fort Worth Barnett that are just waiting on pipeline and/or completion and that backlog will accelerate the amount of production as the company adds rigs in the Barnett during the second half of the year. The production is expected to ramp up dramatically from the 150 million a day. EOG expects South Texas, Tyler division and the Rocky Mountain production to ramp up. But the most significant amount of that contribution will come from Fort Worth.

Is the East Branton Field in Cotton Valley?

It''s lined underneath the Cotton Valley.

What is happening in Barnett Shale in terms of spud to tying times between when you drill the well and when it is actually hooked up?

What takes the longest time is the stage from when the company gets a well and moves the drilling ring off it to when it gets the well connected to sales. In Johnson County, EOG is drilling wells in line upon 500 foot spacing where each interferes with another. The company will bring 4 or 5 wells simultaneously. On the average it takes 45 to 60 days for a well to be drilled. This means that the first well might be unused for a couple of months waiting on the others to be drilled.

It looks like you did a little better this quarter on natural gas. Could you comment that?

The company was wide on its 8-K differentials. As the market gets tighter, it seems like the differential sometimes gets a little higher.

What is your overall decline rate?

For the domestic part of the company it’s probably in the range of 25% to 30%.

Could you give any information on Wolfcamp?

The company continues to work on the completion there. Over the last six wells EOG averaged close to 4 million a day, and that’s out from previous well completion of probably average about 2.5 million a day.

With the improvement to 4 million would you expect the decline curve to be comparable?

It’s probably early to comment but EOG supposes it’s going to be probably same as what it had on the decline after three months production.

Do you see potential for shale gas in Canada?

The company stresses that it had already evaluated Canada’s potential as one of the Barnett clones is in Canada.

Are you prepared for the production ramp up in Johnson County?