Laredo Petroleum Holdings (LPI) announced a $760 million capital budget for 2012, with $560 million allocated toward development on the company’s Permian Basin properties. The company estimates that this level of spending will grow production by 25% over 2011.
Laredo Petroleum Holdings has 135,000 net acres in the Permian Basin and is working on the Wolfberry, Wolfcamp and Cline oil formations on its acreage.
Laredo Petroleum Holdings is currently operating 16 rigs in the Permian Basin and will ramp up to between 19 and 20 rigs by the end of 2012. Twelve of the rigs will drill vertical wells and the balance of the rigs will be working on horizontal wells.
