LINN announced 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.
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