Powder River Basin
In April 2012, LINN entered a joint-venture agreement to develop the Salt Creek oil field in the Powder River Basin of Wyoming, where Anadarko has implemented world-class enhanced oil recovery facilities (EOR) and infrastructure to increase production. The field is estimated to have approximately 1 billion gross barrels of oil remaining in place and is expected to deliver 10 years of steady production growth. It has a low decline rate of less than 7 percent and an estimated reserve life of approximately 28 years.
We also expect to greatly benefit from the knowledge we will gain about CO2 enhanced oil recovery operations through this partnership. We believe we have the potential to apply this knowledge and technology to several of our existing legacy oil fields.
Enhanced Oil Recovery
EOR is used to increase the amount of oil produced from mature reservoirs after primary recovery methods run their course. EOR operations in Salt Creek utilize carbon dioxide (CO2) to stimulate oil production from a century-old field. The CO2 injected into the ground enhances domestic oil production and prevents a greenhouse gas from being emitted into the atmosphere. As listed on Anadarko’s website, the Salt Creek project currently sequesters enough CO2 each day to offset the equivalent emissions of more than half a million cars.