In the British Columbia Horn River Basin, EOG intends to continue a steady program and drill seven horizontal wells compared to six last year. EOG now has six months of sustained production from several of the wells.

The BC government is considering royalty incentives to help offset the challenge of the remote location and associated costs and make the play more competitive with other North American gas plays. EOG has 157,500 net acres in the play and it''s worthwhile noting that EOG''s current activity is on the west side of the play there is access to a separate gas pipeline infrastructure with current adequate capacity for a near-term forecasted volume growth. The pipeline will be expanded in the future to meet increases in drilling activity.

Regarding the Pennsylvania Marcellus Play, in total, EOG has 220,000 net acres.

EOG proven up about 40,000 acres in Bradford County by drilling two wells with two net Bcf of reserves each. Additionally, EOG recently proved up additional acreage, it owns via an NFG farmout by successfully testing the COP 409 #3H well in Elf County which is a 1.6 Bcf net well. EOG plans to operate one rig in Pennsylvania this year.

In the Uinta and Green River Basins EOG expects to drill 109 wells this year versus 271 wells in 2008.

In the Saskatchewan and southern Alberta shallow gas area, go downshifts from 470 wells last year to 140 wells this year.

EOG drilled two wells in the Colorado North Park oil project during the fourth quarter that are producing 500 barrels of oil a day and 300 barrels of oil a day. EOG is going to defer further significant activity in this project until oil prices recover.

In Trinidad, the third party M5000 Methanol Plant was down for repairs the entire quarter.

The net contracted volume to this plant is 75 million cubic feet a day and due to the plant down time, EOG produced less in the fourth quarter than was indicated in the November guidance 8-K.

The plant is now back on line and EOG expects production in Trinidad to increase compared to last year. Although EOG has several Tcf of prospects on its existing acreage, the company doesn''t intend to drill any wells in Trinidad during 2009, and it reevaluates the exploration activity when prices are stronger.

In China, EOG will commence its drilling program in few weeks and run one rig throughout the year.

During the fourth quarter, EOG obtained the rights to a potential oil zone in its acres. Now EOG has at least two target intervals, two gas and one interval. It plans to test both zones with horizontal wells.

In the North Sea area, EOG had no drilling activity during 2008, but it plans to drill three exploration wells this year - two oil and one gas. Two of these will be in the East Irish Sea and one in the Central North Sea.

Capitalized interest for the quarter was $12.5 million and for the year was $42.6 million.

- For the fourth quarter 2008, total exploration and development expenditures were $1.2 billion.
- In addition, expenditures for gathering systems, processing plants, and other property, plant and equipment were $156 million.
- For the full year, total exploration and development expenditures were $4.9 billion with only $109 million of acquisitions.

In addition, total gathering, processing, and other expenditures were $477 million.

- For 2008, approximately 25% of the drilling program CapEx was exploration, and 75% was for development.
- At year-end 2008, total debt outstanding was $1.9 billion and the debt to total capitalization ratio was 17%.
- At December 31, EOG had $331 million of cash, giving non-GAAP net debt of $1.6 billion, for a net debt to total cap ratio of 15%, up slightly from 14% at year-end 2007.

The effective tax rate for the fourth quarter was 37%.

- The effective tax rate for the year was 35% and the deferred tax ratio was 87%.
- EOG also announced another increase of the dividend on the common stock. This is the 10th increase in 10 years.
- Effective with the next dividend, the annual indicated rate is $0.58 per share.

For the full year 2009, the 8-K has an effective tax range of 35% to 45% and a deferral percentage of less than 10%.