Linn Energy (LINE) has 102,000 net acres under lease in the Permian Basin and entered the play in 2009. The company continues to be acquisitive here and has made two separate acquisitions in 2011 for total consideration of $238 million.
Linn Energy is pursuing the Wolfberry trend on its Permian acreage and estimates that the company has 400 drilling locations in this play. Production from the Wolfberry trend is currently 9,000 barrels of oil equivalent (BOE) per day, or 75% of total Permian production.
Linn Energy has 88 million BOE of proved reserves in the Permian basin as of 12/31/2010 (using strip pricing, not SEC pricing). This represents 19% of the company’s total proved reserves. Forty five percent of these reserves are proved developed.