LINN Energy’s Rockies region consists of properties located in Wyoming (Green River, Washakie and Powder River basins), northeast Utah (Uinta Basin), North Dakota (Bakken and Three Forks formations in the Williston Basin) and northwest Colorado (Piceance Basin).
LINN Energy began building a Rockies position in 2011 through three acquisitions in the Williston Basin. In early 2012, the Company entered into a joint-venture agreement to develop the Salt Creek Field in the Powder River Basin of Wyoming. During the second half of 2012, LINN secured a stronger foothold in the Rockies through an acquisition of assets in the Jonah Field, located in the Green River Basin. In 2013, LINN acquired properties located in the Uinta and Piceance Basins through the acquisition of Berry Petroleum Company, LLC. The Company further expanded its position in 2014 through the acquisition of assets from Devon Energy Corporation, gaining an additional 396,000 net acres in the region.
Wells in this diverse region produce both oil and natural gas from formations at depths ranging from 1,000 feet to over 14,000 feet. The Jonah Field located in the Green River Basin of southwest Wyoming produces from the Lance and Mesaverde formations at depths ranging from 8,000 feet to 14,000 feet. LINN’s properties in the Washakie Basin produce at depths ranging from 7,500 feet to 11,500 feet. The Company’s properties in the Powder River Basin consist of a CO2 flood operated by Anadarko Petroleum Corporation in the Salt Creek Field. LINN’s properties in the Uinta Basin produce at depths ranging from 5,000 feet to 15,000 feet. The Company’s non-operated properties in the Williston Basin produce at depths ranging from 9,000 feet to 12,000 feet and its properties in the Piceance Basin produce at depths from 7,500 feet to 9,500 feet.
Rockies proved reserves represented approximately 29 percent of total proved reserves at December 31, 2014, of which 65 percent were classified as proved developed. This region produced 318 MMcfe/d or 26 percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $590 million to develop the properties in this region. During 2015, the Company anticipates spending approximately 40 percent of its total oil and natural gas capital budget for development activities in the Rockies region.