Similar to its efforts in the Gulf Coast and Offshore, in West Texas and Southeastern New Mexico, Houston Energy is very heavily oriented toward 3D seismically defined prospects with major emphasis on structurally trapped reservoirs. Typical prospects in the northern Permian Basin are generally oil-prone and on the order of 640 acres or less in aereal extent, but can produce up to one million barrels of oil per well on 40-acre spacing. Structures in the Permian Basin are often vertically conformable, creating stacked pays in the overlying sections. Therefore, HE's prospects typically have multi-pay potential. HE currently holds licenses and/or owns over 740 square miles of late-vintage 3D data in West Texas and Southeastern New Mexico.