however, it does extend the productive life of the field with a corresponding reduction in the present value of the estimated future net revenues discounted at 10% per annum. Prospectively, we expect to continue to use the lower generation rate assumption in our proved reserve estimates, unless and until such time that we are successful in increasing the generation ratesin our permits.

Other Texas Area

The Other Texas area encompasses multiple objectives, including the Cotton Valley, Rodessa, and Travis Peak intervals. We have licenses for over 531 square miles of 3-D seismic data in this area and 11,025 net acres under lease. We expect to invest $8.0 million to drill five wells (4.2 net) in this area during 2008. Four of these wells are designed to continue the evaluation of new projects that represent low to moderate risk opportunities with upside reserve potential.

The primary focus project in this area is the Tortuga Grande Prospect, a Rodessa and Travis Peak opportunity. In 2007 we completed the acquisition of a 20 square mile 3-D survey to evaluate additional potential of the Tortuga Grande area. During 2008, we expect to invest $2.6 million to drill two additional wells (0.9 net) based on the integration of new data with the well information. We believe that, assuming successful drilling in 2008, there will be an inventory in excess of eleven additional locations on the Tortuga Grande project area.

In our Other Texas area, we have a total inventory of 32 leased exploratory drillsites, 31 of which are field extension wells based on initial drilling success. We are pursuing acreage on an additional 25 technically defined prospects.

Other Shale Project Areas

We are continuing to expand our acreage position and databases in new resource shale projects. Regional mapping of shale extent, depth, thickness, organic content, thermal maturation, mineralogy, as well as cost and availability of acquiring leaseswere analyzed to define the project fairways to lease. We have been successful in acquiring approximately 23,900 (including approximately 7,000 net acres related to 2008 acquisitions) net acres in the Fayetteville Shale in Arkansas, and approximately 65,000 net acres in the Woodford/Barnett Shale in West Texas and New Mexico comprised of over 58,000 net acres in the Marfa Basin and 6,651 net acres in the Delaware Basin. We have leased 22,751 net acres in the New Albany shale project located in Illinois and Kentucky where we plan to drill and core a test well in 2008. In addition, we have leased 12,482 net acres (related to a 2008 acquisition) in the Marcellus Shale in New York and Pennsylvania. We anticipate acquiring seismic data and will begin drilling initial test wells in this project in 2008. In 2007 we drilled three wells (1.6 net) to evaluate these Other Shale plays. In 2008 we expect to invest $9.6 million to drill 20 wells (6.7 net) to continue our evaluation of these shaleprojects. Our 2008 drilling program includes one additional well to test the Floyd shale where we currently have 139,800 net acres of leasehold and eleven gross (0.6 net) wells in the Fayetteville trend.

U.K. North Sea Region

Our U.K. North Sea interests are a natural extension of our business model to exploit resources in proven mature regions through 3-D seismic surveys, related technology and proper risk management. The U.K. North Sea includes proven hydrocarbon trends with established technological expertise, available large and state-of-the-art 3-D seismic datasets and significant exploration potential. What began as a low-cost option less than five years ago could soon become a new core area as we attempt to build on our early success with our recent material discovery at Huntington.

Our Huntington well (15% working interest and 3% overriding royalty interest) in the Central Graben Area was drilled in the second quarter of 2007 resulting in two independent discoveries from the same wellbore, one in the shallower Paleocene Forties reservoir and another in the deeper Upper Jurassic Fulmar objective, which tested at a combined maximum rate of over 11,000 Bbls/d equivalent.

The Huntington Forties reservoir was largely appraised by year-end 2007 with eight high-angle deviated side-tracks (laterals) drilled radially from a central top hole location at a net cost of approximately $9.2 million. Appraisal of the Fulmar discovery was also commenced before year-end 2007. Current plans are to submit an application to the U.K. authorities for a Forties field development plan during 2008 with early first oil production expected between late 2009 and early 2010.

Our plan is to seek fast-track development of the Forties reservoir and to use any resulting early cash flow to help fund possible development of the Fulmar, which we expect will be appraised and tested in 2008 at an estimated net cost of $14.5 million. We also plan to participate in the upcoming U.K. 25th license round to further build on our core acreage positions by seeking nearby open acreage that is available and deemed prospective.