LINN Energy’s Permian position consists of properties located in west Texas and southeast New Mexico.
The Permian Basin is one of the largest and most prolific oil and natural gas basins in the U.S. During the second half of 2014, the Company completed divestitures of the majority of its Midland Basin properties. As of December 31, 2014, the Company’s remaining properties in this region are primarily mature, low-decline oil and natural gas wells including several waterflood properties located across the basin and primarily produce at depths ranging from 2,000 feet to 12,000 feet.
Permian Basin proved reserves represented approximately five percent of total proved reserves at December 31, 2014, of which 70 percent were classified as proved developed. This region produced 153 MMcfe/d or 13 percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $355 million to develop the properties in this region. During 2015, the Company anticipates spending approximately eight percent of its total oil and natural gas capital budget for development activities in the Permian Basin region.