I specify on a go-forward basis because we retain the producing zone in our existing wells on the acreage position. These wells are outlined in red on the map. Once BHP exercises its option to purchase, the two companies will form areas of mutual interest around the larger acreage blocks and acquire future acreage in the Delaware sub-basis on a 50/50 basis.The potential AMIs are outlined in purple and blue on the map. BHP would operate the AMIs outlined in purple, they represent about 75% of the net acres, we would operate the AMIs outlined in blue are approximately 25% of the net acres. We obviously don’t know at this point what the drilling activity level may be in 2012 and ‘13 from the potential joint exploration agreement. If BHP exercises its option to purchase, current year drilling could result and would most likely increase our planned capital investment.
Energen Resources' CEO Discusses Delaware Basin Joint Exploration Agreement With BHP Bilition (Transcript)
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