LINN Energy’s Michigan/Illinois position consists primarily of natural gas properties in the Antrim Shale formation in north Michigan and oil properties in south Illinois.
LINN Energy entered the Michigan Basin in 2010 through an acquisition of natural gas properties in the Antrim Shale. In Illinois, the Company operates a mature waterflood asset that is 100 percent oil. These wells produce at depths ranging from 600 feet to 4,000 feet. The Michigan/Illinois region consists of a low-decline asset base and continues to produce at consistent levels.
Michigan/Illinois proved reserves represented approximately four percent of total proved reserves at December 31, 2014, all of which were classified as proved developed. This region produced 33 MMcfe/d or three percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $3 million to develop the properties in this region. During 2015, the Company anticipates spending approximately one percent of its total oil and natural gas capital budget for development activities in the Michigan/Illinois region.