Today our proved reserve asset base is roughly 52% shallow water Gulf of Mexico and 48% onshore unconventional and conventional Texas Gulf Coast, and from a commodity standpoint, is approximately 65% natural gas and 35% crude oil and natural gas liquids.  Our legacy natural gas operations in the Gulf of Mexico continue to provide us stable cash flows that we will use to test our oil and liquids weighted onshore exploration projects, and our development projects when commodity prices improve.

During 2014, we drilled 40 onshore wells, which included 18 wells targeting the Woodbine formation in Southeast Texas; 19 wells targeting multiple formations in South Texas;  two wells targeting the James Lime formation in San Augustine County, Texas;  and one well on our new FRAMS project in Natrona County,  Wyoming targeting the Mowry Shale.  In the Woodbine, six of the wells drilled were on two multi-well pads to test the net recovery efficiency of 500-foot downspacing in our Chalktown area while another well in our Iola Grimes area targeted the Upper Lewisville formation using twice the number of frac stages, four times the amount of proppant, and fifty percent longer effective lateral lengths than our two previous attempts in the Iola Grimes area. In South Texas, 14 wells in Zavala and Dimmit counties targeted the Buda formation; one well in Zavala and Dimmit counties was drilled as a vertical pilot well to test the viability of the Eagle Ford Shale and other formations in the area; and four wells in Fayette and Gonzales counties, Texas were drilled on our new Elm Hill project.  Of these 40 wells, 26 were on production by December 31, 2014, with 12 more to be placed on production at various times in the first or second quarters of this year.

We are excited about the progress made derisking and further delineating parts of our portfolio during the year. We will continue to do that in 2015, but at a reduced pace as we balance the desire to continue to exploit the potential of our inventory with the desire to maintain our strong financial condition during this low commodity price environment.  We have elected to defer any development-type drilling programs until a combination of higher commodity prices and/or lower capital costs provide superior return on investment economics over the longer term, i.e. rather than internal rates of return economics on high decline rate unconventional wells as many resource wells produce 60% to 70% of their PV-10 value in the first 18 months.