Linn Energy (LINE) closed on an acquisition of additional Granite Wash acreage in December 2011, and now has 600 drilling locations into this play in the Texas Panhandle. The company estimates that this inventory will last ten years.
Linn Energy drilled eight operated wells into the Granite Wash in the fourth quarter of 2011, and 29 wells in 2011. The company is currently operating nine rigs in this play.
Linn Energy reported net horizontal Granite Wash production during the fourth quarter of 2011 of 86 million cubic feet of natural gas equivalents per day, a 34% sequential increase over the previous quarter. Full year production averaged 59 million cubic feet of natural gas equivalents per day, up 450% from 2010.
Linn Energy has set an $880 million capital budget for 2012, and will allocated 53% of these funds to the Granite Wash. This will cover approximately 75 horizontal wells during the year.