Linn Energy (LINE) announced that the company has shifted its Granite Wash development program towards the oil bearing Hogshooter Wash formation in Texas. The company is operating eight rigs here and plans to drill an additional 20 wells by the end of 2012.
Linn Energy reported that the first three Hogshooter Wash wells drilled and completed by the company had average initial production rates of 2,500 barrels of oil, 500 barrels of natural gas liquids and 3 million cubic feet of natural gas per day. The company is also testing the potential of the Hogshooter Wash formation on its properties in Oklahoma.
Linn Energy’s plans to put more than 50% of its capital budget into the Granite Wash in 2012 and drill approximately 65 wells. The company reported average production of 137 million cubic feet of natural gas equivalents per day from the Granite Wash during the second quarter of 2012.