At year end, proved reserves of 49 mmboe before royalties (43 after royalties) in the Gulf of Mexico represented about 5% of our total proved oil and gas and Syncrude reserves. Our Gulf production and reserves are primarily concentrated in four deep-water and five shallow-water (shelf) areas.

Deep-water
Most of our deep-water production comes from our 30% non-operated Gunnison field and our 100% operated Aspen field. The remainder comes from our 50% non-operated Wrigley field and three 100% operated properties acquired in 2007. In 2009, our 25% non-operated Longhorn field is expected to come on stream mid year with peak production of approximately 200 mmcf/d (50 mmcf/d net to us) expected by year end.

Gunnison is in 3,100 feet of water and includes Garden Banks Blocks 667, 668 and 669. Gunnison began production in December 2003 through our truss SPAR platform that can handle 40,000 bbls/d of oil and 200 mmcf/d of gas. Our Gunnison SPAR facility has excess capacity, leaving room for growth from regional exploration and processing of third-party volumes. We achieved payout on Gunnison in December 2005, just two years after first production. In 2008, our share of production before royalties was approximately 4,200 boe/d (3,700 after royalties).

Aspen is on Green Canyon Block 243 in 3,150 feet of water. The project was developed using subsea wells tied back to the Shell-operated Bullwinkle platform 16 miles away and began producing in December 2002. Our share of 2008 production before royalties was approximately 3,100 boe/d (2,800 after royalties).

Wrigley is on Mississippi Canyon Block 506 in 3,300 feet of water. The project consists of a single subsea well tied back to the Shell-operated Cognac platform 17 miles away. Wrigley began gas production in July 2007 and our share before royalties in 2008 was approximately 2,400 boe/d (2,100 after royalties).

In 2007, we acquired three new deep-water producing fields: 1) Garden Banks Block 205; 2) Green Canyon 137; and 3) Green Canyon 6/50. These fields are in water depths between 700 and 1,100 feet. Production from Green Canyon 6/50/137 has been temporarily suspended as the third-party platform that processed our oil and gas was destroyed by Hurricane Ike in September 2008. We are currently assessing our options to restore field production.

In 2009, we expect to have two fields begin producing oil and gas. Our non-operated Mississippi Canyon 72 property is designed to come on stream through a single subsea gas well tied back to the BP-operated Pompano Platform five miles northwest of the field. The Longhorn property is on Mississippi Canyon Block 502 in 2,400 feet of water. The project is a non-operated four-well subsea tie-back to the Corral platform located 19 miles north of the field. We expect production from these properties to commence in mid 2009.

Shelf
Our shelf producing assets are offshore Louisiana, primarily in five 100%-owned field areas: Eugene Island 18, Eugene Island 255/257/258/259, Eugene Island 295, Vermilion 320/321/339/340, and Vermilion 76 (consisting of Blocks 65, 66 and 67). We continue to look for opportunities to optimize these assets. In 2009, our shelf development program includes a well at Vermilion 76 to access additional reserves and four recompletion projects.