LINN Energy’s California position consists of properties located in the Midway-Sunset, McKittrick, Poso Creek and South Belridge fields in the San Joaquin Valley Basin as well as the Brea Olinda and Placerita fields in the Los Angeles Basin.
The properties located in the Midway-Sunset, McKittrick, Placerita and Poso Creek fields were acquired in the 2013 acquisition of Berry Petroleum Company, LLC. The Company received the properties located in the South Belridge Field through an exchange of properties with Exxon Mobil Corporation in 2014. These properties produce using thermally enhanced recovery methods at depths ranging from 800 feet to 2,000 feet. Thermal production in the San Joaquin Valley Basin is primarily from the Tulare, Potter, Monarch and Diatomite formations. The Los Angeles Basin thermal production is from the upper and lower Kraft formations. The Brea Olinda Field was discovered in 1880 and produces from the shallow Pliocene formation to the deeper Miocene formation at depths ranging from 1,000 to 7,500 feet. The Company’s properties in this region are primarily mature, low-decline oil wells.
California proved reserves represented approximately 15 percent of total proved reserves at December 31, 2014, of which 74 percent were classified as proved developed. This region produced 171 MMcfe/d or 14 percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $236 million to develop the properties in this region. During 2015, the Company anticipates spending approximately 29 percent of its total oil and natural gas capital budget for development activities in the California region.