Permian Oil and Gas

SandRidge Energy - Permian Basin - Fourth Quarter Of 2011 Conference Call

SandRidge Energy (SD) made the following comments regarding the development of properties located in the Permian Basin during the company’s fourth quarter of 2011 earnings conference call held on February 24, 2012.

“The Permian oil acquisitions were the initial stage of a plan to move from a single natural gas asset company to a premier oil company built on shallow, conventional, low-risk, low-cost reservoirs.”

“So tying together an improved balance sheet from continued successful capital raising. $1 billion of liquidity, a deep inventory of high return oil drilling opportunities in the Mississippian and the Permian plus the Dynamic acquisition, we believe the company is in the best position it has been in since its inception in 2006.”

“And we now have rates of return in the Permian of 72% on the projected wells we're drilling this year.”

SandRidge Energy is holding an analyst day on February 28, 2012, and plans additional disclosure on the company’s Permian Basin operations at that time.

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SandRidge Energy Updates Permian Basin Operations For Fourth Quarter Of 2011

SandRidge Energy (SD) issued an operations update for the fourth quarter of 2011and disclosed additional information on the company’s activity in the Permian Basin.  The company has 225,000 net acres under lease.

SandRidge Energy drilled 195 Permian Basin wells in the fourth quarter of 2011, boosting the company’s total well count to 803 for the year.  The company estimates that it has approximately 7,900 drilling locations left on its Permian basin properties, and plans to drill over 750 wells here in 2012.

SandRidge Energy is operating 13 rigs in the Permian Basin and is focusing on the Grayburg/San Andres formation in the Central Basin Platform. These formations are developed vertically and are at depths ranging from 4,500 feet to 7,500 feet.

Linn Energy Sets Permian Basin Priorities For 2012

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