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http://seekingalpha.com/article/171895-s...

Ward's message (snipped) :
Tom Ward

Our primary focus for 2009 has been to raise capital and strengthen our balance sheet in preparation of the Century Plant startup next year. As a result of the various capital transactions and asset sales that we announced, along with being disciplined about managing our capital program during a time of low gas prices, we were able to exit the quarter with nothing drawn on our $895 million bank revolver.
We call this our “Road to 2012 Plan.” This plan leads us to producing over 500 million cubic feet a day of gas in two years, primarily by ramping up development of our high CO2 gas in the Pinon field when the Century plant comes online next summer.
Keep in mind that we can grow as fast or faster than any company in our industry. In fact, during 2008, we grew production 58% and grew by 72% from prior year. The primary reason for us being able to achieve this growth rate was having the available CO2 plant capacity to drill our Warwick Thrust wells. The Century plant will again give us the ability to grow as we did in the past years, but on a much larger scale.
At year-end 2008, we had only 315 million per day of CO2 treating capacity. We currently have 375 million cubic feet per day. By 2010, we plan to have 775 million per day and by later 2011, we plan to have 1.2 Bcf per day of treating capacity. This is the key for us to successfully execute our Road to 2012 Plan and is the catalyst for growth in the coming years.
As for 2009, we made the decision to not grow just for the simple sake of growing, but rather to focus on a two-year plan that will allow us to achieve sensible, profitable growth and value expansion. During the third quarter, NYMEX gas averaged $3.17 and WAHA gas dipped below $2. At these levels, it was not economic to grow production and would have had no material impact on our EBITDA.
As we look forward to 2010, we’ve begun to increase our activity. Starting in October, we began to increase our rig count and have nine rigs operating today. As we move into 2010, we plan to continue to ramp up the drilling program to 26 rigs by mid-year and start our exploration program by drilling six distinct structures in the West Texas Overthrust.
Our production guidance for 2010, excluding any exploration success, is 120 Bcfe of production and $700 million – $750 million in capital spending. Of the 26 rigs we plan to run in 2010, 21 of those are planned to be drilling Warwick Thrust high CO2 wells.

Every quarter that goes by brings us a quarter closer to turning on the Century plant. The plant construction process is going well and we anticipate Phase I startup in July 2010. With the work that was performed this year on the legacy plants, our CO2 treating capacity has increased from 350 million cubic feet per day to 375 million cubic feet per day currently.
Century Plant I will add an incremental 400 million cubic feet per day, bringing the total capacity to 775 million by next summer. By this time, we anticipate having second quarter of 21 rigs running in the Warwick Thrust, developing high CO2 wells and filling plant capacity. Phase II is planned to be completed in 2011, bringing on additional 400 million per day treating capacity for a total again of 1.2 Bcf a day.
The continued success of the Warwick Thrust development program coupled with the Century plant makes the Road to 2012 and 500 million a day of net production achievable.
As I mentioned earlier, we plan to drill six of these structures in 2010, beginning with two rigs in the first quarter. Considering that Pinon will produce over 15 Tcf of gas including CO2 from under only 50,000 acres and that the structures we are targeting are similar in size to Pinon, a discovery would change the company in a manner not contemplated today or in our Road to 2012 growth strategy.