LINN Energy Announces Results of First Operated Horizontal Granite Wash Well, With an Initial Production Rate of 19.4 MMcfe Per Day
HOUSTON, Jun 2, 2010 (GlobeNewswire via COMTEX News Network) -- LINN Energy, LLC (Nasdaq:LINE) announced today results from its first operated horizontal Granite Wash well in the Texas Panhandle. The Company owns a 57 percent working interest in the McMahan 22-2H, which tested at a 24-hour production rate of 10.8 MMcf/d of natural gas and 634 Bbls/d of condensate. The natural gas production has a heating value of 1,300 Btu/cf, and when processed, should yield approximately 1,250 Bbls/d of natural gas liquids. Including estimated NGL recoveries and shrinkage associated with processing the natural gas, the McMahan 22-2H produced approximately 19.4 MMcfe/d. This well was drilled in 36 days with a horizontal lateral of approximately 4,100 feet and was completed with a 12 stage fracture stimulation, for an estimated well cost of $6.8 million.
"We are very pleased with the excellent results of our first operated horizontal Granite Wash well, which had an initial production rate of 19.4 MMcfe/d, and was drilled and completed 10 days ahead of schedule and well below our estimated costs," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. "In the Granite Wash trend, the Company holds approximately 73,000 net acres in the Texas Panhandle and southwestern Oklahoma, and we have identified more than 100 drilling locations in the Texas Panhandle area alone. Given the successful completion of our first well and drilling of our second well, we have elected to accelerate our Granite Wash drilling program, which is expected to generate significant organic production growth for the Company."
2010 Plans and Current Status
LINN Energy reached total depth and ran pipe on its second operated horizontal Granite Wash well, the Black 50-1H, in which the Company owns a 63 percent working interest. This well was drilled in 36 days and below estimated costs, with completion scheduled to begin in early July. The Company has secured a second operated rig to begin drilling in mid-June and has added 8 wells to its 2010 Granite Wash drilling program, which now includes participation in 10 operated wells and 8 non-operated horizontal wells. To date, LINN Energy has participated in drilling five horizontal Granite Wash wells, two operated and three non-operated.
Additional information on the Company's Granite Wash operations can be found under Presentations in the Investor Center on LINN Energy's website (www.linnenergy.com). Photographs of LINN Energy's Granite Wash operations can be obtained in the Media Resources section of the News Room on LINN Energy's website ( www.linnenergy.com).
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This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include but are not limited to forward-looking statements about acquisitions and the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, prices and demand for oil, gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report filed on Form 10-K and other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE: LINN Energy, LLC
CONTACT: LINN Energy, LLC Investors: Clay Jeansonne, Vice President - Investor Relations 281-840-4193 Media: Paula Beasley, Manager, Public Affairs & Communications 281-840-4183
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