Outlook

In 2008, our domestic programs will constitute approximately 80 percent of our planned capital and substantially all of our expected production. Performance of these programs will require successful integration and execution of our 2007 acquisitions and our 2008 planned divestitures. In 2008, our International capital is expected to increase approximately 50 percent over our 2007 program.

Overall, our drilling and development program is low-risk and well-balanced. In 2008, we will place more focus on our onshore business and on developing the acquisition and the exploration successes we had in 2007.

We will build on it’s successes in 2007 by focusing on the following initiatives:

• Advancing International projects;
• Completing divestitures;
• Achieving production targets between 860–920 MMcfe/d;
• Growing non-proved inventory through studies and assessments;
• Furthering improve capital and expense efficiency.

*Cautionary Statement Regarding Forward-looking Statements