Linn Energy (LINE) has more than 100,000 net acres under lease in the Permian Basin, and operates approximately 1,300 wells. The company reported average production of 13,600 barrels of oil equivalent (BOE) per day in the fourth quarter of 2011, up from 9,500 BOE per day in the corresponding quarter of 2010. Full year production in 2011 averaged 12,100 BOE per day, up 137% over 2010.
Linn Energy has set an $880 million capital budget for 2012, and will allocate 25% of this capital to operations in the Permian Basin. This will cover the cost of approximately 100 wells during the year.
Linn Energy is working in the Wolfberry play in the Permian, and has 38,000 net acres exposed to this play. The company operated six rigs here in 2011 and drilled 114 operated wells. In 2012, the company plans to operate five rigs and drill approximately 100 Wolfberry wells.
Linn Energy is targeting numerous formations in the Wolfberry, including the Spraberry, Wolfcamp, Strawn, Atoka and Fusselman zones. The company is currently testing 20 acre down spacing in the Wolfberry play