Linn Energy (LINE) increased the company’s position in the Permian Basin during the third quarter of 2011 through two small acquisitions.
Linn Energy paid $105 million for leasehold prospective for the Wolfberry play and added production of approximately 800 barrels of oil equivalent (BOE) per day to the company’s total Permian production. The company reported 9,000 BOE per day prior to these two acquisitions. The properties also had proved reserves of approximately 8.3 million BOE (78% crude oil and natural gas liquids).
Linn Energy plans to drill a minimum of 130 wells in 2011 into the Wolfberry play, which is a combination of the Spraberry and Wolfcamp formations. The company is operating five rigs in the plays and estimates that it has more than 400 locations on its acreage.
Linn Energy said that the average Wolfberry well has an estimated ultimate recovery (EUR) ranging from 100,000 to 160,000 BOE.
