In 2008, Harvest acquired an interest in the Budong-Budong Production Sharing Contract (Budong PSC) by committing to fund the first phase of the exploration program including the acquisition of 2-D seismic and drilling of the first two exploration wells. The Budong PSC includes a ten-year exploration period and a 20-year development phase. During the initial three-year exploration phase, which began January 2007, we plan to acquire, process and interpret 2-D seismic and drill two exploration wells.
We have a 47 percent interest in the project, and our partner is the operator. Prior to drilling the first exploration well, subject to the estimated cost of that well, our partner will have a one-time option to increase the level of their carried interest to $20.0 million, and as compensation for the increase, we would increase our participation to a maximum of 54.65 percent.