- The McInroe A Unit #1H, which was tested at a rate of 2.6 MMcfd, will be connected to sales during the third quarter.
- The Mabery A and B Unit #1H began initial production in July at 1.8 and 2.1 MMcfd,
gross, respectively.

- In Johnson County, there are noticeable improvements in completion technology and wealth spacing that will potentially net a higher recovery factor.
- In Hill County, eight wells were drilled, four wells per sale were completed and a reserve per well.
- In Western counties, there is a 22 well development program in the U.S. and a 50 well development program in Hood.

- The company is currently running 23 rigs, 16 in Johnson County, 1 in Hill, and 6 in the Western counties of which 11 are new automated rigs.
- There are new automated rigs in fleet to increase to 19 by 2008 mainly because the new rigs reduce the drilling days by approximately half the days of the conventional rig.

Utah Uinta Basin and Mesaverde:

- It is the main driver of ex-Barnett growth and is a consistent high ROR play.
- The company has direct after tax rate of return of 30% to 40%.
- The Willis 23 #1, began flowing to sales at a rate of 800 Bopd.
- The Cooper 358 #1H was tested at 3.0 MMcfd and 700 Bopd.

- The company elected to build own intrastate gas pipelines and gas process plants in part of the Barnett Shale development and North Dakota oil play because of possible arbitrage opportunity later on.

Trinidad:

- Exceeded contract takes in Trinidad and increased full year production estimates.
- The gas contract for the Block 4(a) discovery was finalized and is now working on the final stages of platform design.
- Sales under this project will boost production by about $60 million a day net commencing in early 2010.

Macro Outlook

- Industry production will continue to decline in Canada and will likely have less LNG impacts.
- High oil prices will discourage fuel switching.
- Total Canadian supply will likely fall another 2.5%.
- For 2008, EOG will hedge gas more heavily than in 2007 market permitting reflecting the reality that the stock was punished heavily because of an un-hedged position.
- Current financial hedge position is 12% of North American gas production at $8.79 Henry Hub price. Year end target is about 30% to 35% of 2008 gas production hedge.

- The management discounted possibilities of hedging oil as long as the market is in backwardation.

Key questions and answers from the second quarter earnings call conducted by EOG Resources, Inc. (EOG) on August 3, 2007.

Thomas Gardner (Simmons & Company): With the recent success you have had in increasing your Bakken oil production and the rig count there, is there any desire to create a more balance product mix?

Mark G.: We are optimistic on the oil side, so we signalled our operating divisions to see if we can shift the balance of our portfolio organically to a bit more oil mix.

Thomas Gardner (Simmons & Company): Can you give us views on the outlook for the oil versus gas?

Mark G.: We are pretty sanguine about the outlook for crude oils in terms of just looking at overall worldwide supply and demand. We think that most predictions out there are missing the boat on the non-OpEx supply growth.

Thomas Gardner (Simmons & Company): Can you comment on this completion technology that is leading to higher rates and recovery in the Barnett?

Mark G. Papa: Conceptually we don’t disclose a lot of information on our Barnett completion technology because we believe we have a competitive edge because our competitors are not getting the quality of wells that we have.

Thomas Gardner (Simmons & Company): Are you planning on keeping the deep rights on the Appalachia sale?

Mark G. Papa: Yes.