LINN began building a Rockies position in 2011 through three acquisitions in the Williston Basin. In April 2012, we entered a joint-venture agreement to develop the Salt Creek oil field in the Powder River Basin of Wyoming. In July 2012, we secured a strong foothold in the Rockies through an acquisition of assets in the Jonah Field of the Green River Basin.
Jonah Field, Green River Basin
The Jonah Field is expected to produce approximately 145 million cubic feet equivalent per day and provides LINN with a significant operated position in the Green River Basin. Current proved reserves from this asset total approximately 730 Bcfe, and LINN has identified total resource potential of approximately 1.2 Tcfe – providing significant upside potential.
Salt Creek Field, Powder River Basin, Wyoming
LINN is partnering with Anadarko to increase production from the Salt Creek Field though enhanced oil recovery (EOR) technology that utilizes carbon dioxide (CO2) to stimulate 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 EOR 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 Technology
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 CO2 to stimulate oil production from a century-old field. The CO2 injected into the ground enhances 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.
Williston Basin, North Dakota
LINN built a nonoperated acreage position in the Williston Basin to approximately 23,000 net acres through three acquisitions that closed mid-year 2011. These acquisitions provide us with a base entry into a premier oil basin with vast resource potential. We are partnering with high-quality operators that have extensive operating experience in the area. This is enabling us to accelerate our knowledge in the play, while reducing execution risk in the development of more than 800 horizontal drilling opportunities. In 2011, we participated in 65 gross Bakken wells with working interests averaging 6 percent. In the fourth-quarter 2011, daily production from the Bakken increased 40 percent over production at the time of the acquisitions. In 2012, we plan to participate in approximately 100 gross horizontal wells, with an average working interest of 7 percent.