And so we’re having discussions with folks out of both categories as we’re thinking about brownfield facilities, being able to address their CO2 emissions and some new greenfield investments. And so those conversations are ongoing, and we’ve got quite a few of those. And so we’re very excited about continuing to advance that project. And as we mentioned in our release, still expecting to go drill that first stratigraphic well later this year in the offshore portion, which will help supplement our first permit for that project hopefully some time in 2024.
Jeffrey Robertson: Thanks. Tim or Robin, how long does it take to gather the data once you’ve drilled that well that you need to put in a permit application?
Robin Fielder: Some of that data will be captured on site. We’ll be logging the well itself and collecting some core data. We’ll take some of that core that we’re participating in the CCS consortium with that core so they’ll be reviewing some of that. But we’ll get some of that data in real time as we’re on the location. Again, it’s more supplementary to what we’d be filing. We already have the seismic coverage. We’ve got a model built, back part of our initial bid on that offshore general and office lease back in 2021. So we’ve got a great data set up there. This is more confirmatory and to really help supplement that application process as it goes into EPA and then hopefully, eventually, the Texas Railroad Commission as the state achieves primacy down the road.
Operator: The next question comes from Noel Parks from [indiscernible].
Unidentified Analyst: So just a couple of things. One thing I was thinking about is just the tiebacks that you have are so attractive from a capital efficiency standpoint. And I wonder, as you just were looking at planning over the next few years, what sort of inflation have you baked in or assume as you look at some of these prospects, I wonder if even Lime Rock and Venice were they pretty much set in motion contracted before impact of the most recent inflation? Or are the examples of something also that might also be burdened by then?
Timothy Duncan: I think it’s — look, a lot of it is largely driven by rig and the ancillary services around those rigs. You need the rigs to drill them. You need the rigs obviously to complete them. On the ancillary services around vessels related to subsea projects and things of that nature. And look, there’s demand around global infrastructure installation. You’re seeing it in areas like , you’re seeing it in areas like West Africa. So we certainly have to adapt to the market. I do think these new time frames are typically when you think of these projects, you’re thinking about them in somewhere between 18-month windows, 24-month windows. Now again, Venice and Lime Rock we accelerated. We did that because and we had long leads.
And so once those are secured, you’re not thinking about the inflation of tubulars and things of that nature. So I do think one of the reasons we want to be thoughtful around the next round, we have an inventory that’s got some quicker hookups, some development and then some broader exploitation and exploration. You’ve got to adjust to where that’s going. And I think for us to say, “Hey, look, while we’ve been working really hard this year and had rigs on contract for the last 15 to 18 months, let’s just step right into where the rig market is going.” I think our idea is say, look, let’s take pause in the first half of the year. There’s going to be some activity, but not as much operated activity. And then let’s think about where this rig market is going and how do we play in it.
And I don’t think we play in it by being afraid of slowing down and feeling like we halved it up, and then we have to go take a contract over multiple years at a rate we haven’t seen in the last 10 years. That’s not probably the right responsible risk management decision for a company our size. So we do think about inflation. We think about where if we’re going to spud something in ’25, what do we think the market is going to be in ’25 and so we do that from a planning perspective. Sometimes you want to see, look, if we take our foot off the gas and maybe others, does that create maybe a flattening of that market. But there’s a little, why don’t we wait and see. And by waiting and seeing, we got to grab some windows instead of grabbing 2-year contracts, and we grab some windows.
Unidentified Analyst: Right. I hadn’t even been thinking of the sort of cooling next year of your spending around uncertainty in the service environment. But as you said, it seems like we’re clearly entering one of the most uncertain environments we’ve seen a lot because we, of course, had this huge run-up. And then — and now sort of uncredited interest rate environment shift with us now looking ahead with China and everything, some pretty serious concern about maybe now as one of the recession hit. So all those combined certainly . So I think you’re maybe even ahead of some other players in the industry with that thinking.
Timothy Duncan: Well, I mean, look, I think it’s just more what are the things — what are the risks that you need to manage. Again, we’re not a large cap. We don’t have 250,000 barrels equivalent a day. We don’t — that’s what we aspire to become ultimately. But we are where we are. We’re a company that was founded 10 years ago. And as we build these things in Gulf of Mexico, we know where that risk management needs to look like. You need to have appropriate hedges. We’ve layered on some in the fourth quarter when we had run up in prices. And we still have a constructive price environment but you need to protect yourself from a commodity perspective, you need to protect yourself from a capital allocation perspective and a contract risk perspective.
And those that haven’t in the past haven’t made it, and we’ve seen that. And that’s not an offshore phenomena. That’s an onshore in offshore phenomenon. We talked in the past, I think there’s been over 300 bankruptcies in the last decade since we started this company. So we think about that risk management a lot. And again, I don’t — I think we have to be mindful of where the market is. And if that changes a little bit of the trajectory of production growth ultimately brings down CapEx, but still generates meaningful cash flow. That’s the right risk management strategy. If you do have a little bit of uncertainty on what Fed is doing and things of that nature. But I think generally, we’re constructive around the commodity. I think this is just what’s appropriate risk management.
Operator: The next question comes from [indiscernible] Sidoti & Company.
Unidentified Analyst: Hey, good morning, everyone. A couple of questions around the CCS business for Tim or Robin. You mentioned the first Class VI permits be reached administrative completeness. Can you give us an update on the overall expected time line for a Class VI permit now? And then what are the next steps for Harvest Bend?
Robin Fielder: Yes, sure, Kyle. I appreciate the question. So yes, we filed our first application there at harvesting in October. We received that administrative completeness. And so now it’s entering what all technical review. So we think that could last probably the next 12 or so months as they go through the details of that first permit. We do receive some early comments back on that first permit, then we were able to incorporate some of that feedback into our second permit, which is for an additional 2 wells. So we now have 3 wells sitting with EPA but also keeping in mind, we co-submitted that through the Louisiana Department of Natural Resources as well. So we’re all set up, hopefully, as the state achieved pharmacy sometime next year for a very smooth transition over to that regulatory agency.
