Following the closing of our Delhi Farmout in June 2006, we also began the process of identifying Unconventional Natural Gas Resource Initiative projects. We chose two projects in the Woodford Shale trend in eastern Oklahoma. In choosing these two projects:

• We are leveraging our staff’s expertise in horizontal drilling and tight gas development, a prerequisite to successfully exploiting and developing these resources;
  
  
• We are focusing on formations that are well known;
  
  
• We are planning to utilize the expected substantial net cash flows from our Giddings Field operations and our Delhi property beginning in fiscal 2010; and
  
  
• We are adding additional natural gas exposure to balance our existing crude oil exposure.

We began actively acquiring leases in these two projects in May 2007.  At September 30, 2008, we had acquired approximately 18,000 net acres across the two projects. The northern project targets the Woodford Shale at a depth of approximately 1500’ and has been offset by more than 50 wells drilled to the Woodford by another operator. The southern project targets the Woodford Shale at depths from 4000’ to 5000’ and has been offset by at least one producing Woodford Shale well at an initial rate of approximately 1 MMCFD.
 
Our overall business plan can be summarized in the following graphic: