In Canada, our consolidated subsidiary Canada Oil Sands Co., Ltd., through the locally-incorporated Japan Canada Oil Sands Limited (JACOS) is conducting oil sands development using the Steam-Assisted Gravity Drainage (SAGD) method as operator in the Hangingstone area in the Athabasca region, Alberta. In 2007, an additional seven pairs of horizontal wells were drilled. Among these, we started production at one pair of wells. Accordingly, we were engaged in production at 16 pairs of horizontal wells at the end of 2007. Average gross production volume in 2007 for the production area was 1,124 kl/d (7,071 bopd) of crude oil (bitumen). From the winter of 2006, we began geological surveys in the undeveloped area by conducting 3D seismic surveys and drilling appraisal wells.