LINN’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. LINN made a strategic entry into the Permian Basin in 2009 through the acquisition of properties in west Texas and southeast New Mexico. Through a series of bolt-on acquisitions, LINN built the Permian region into a core area and through year-end 2011, had closed 10 Permian acquisitions for a total of approximately $1.5 billion. In 2013, LINN further strengthened its Permian position with the $525 million acquisition of the East Goldsmith Field and the addition of properties located in Texas through the acquisition of Berry Petroleum Company, LLC. LINN’s Permian wells primarily produce at depths ranging from 2,000 to 12,000 feet.
Permian Basin proved reserves represented approximately 13 percent of total proved reserves at December 31, 2013, of which 51 percent were classified as proved developed. Recent industry activity has begun focusing on Wolfcamp horizontal drilling in the vicinity of the Company’s properties. The Company had no proved reserves booked for Wolfcamp horizontal wells at December 31, 2013. This region produced 87 MMcfe/d or 11 percent of the Company’s 2013 average daily production. During 2013, the Company invested approximately $218 million to drill in this region. During 2014, the Company anticipates spending approximately 25 percent of its total oil and natural gas capital budget for development activities in the Permian Basin region, primarily in the Wolfberry trend.
The Wolfberry trend is located in the north central portion of the basin where the Company has been actively drilling vertical oil wells since 2010.
The Company also produces oil and natural gas from mature, low-decline wells including several waterflood properties located across the basin.