LINN Energy’s TexLa region consists of properties located in east Texas and north Louisiana and primarily produces natural gas from the Cotton Valley and Travis Peak formations.
In early 2012, LINN Energy acquired properties located in the Overton Field that primarily produce natural gas from the Cotton Valley formation. In 2013, LINN Energy added to its TexLa position by acquiring additional Cotton Valley formation properties as well as Haynesville/Bossier Shale properties 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 250,000 net acres in east Texas and north Louisiana. LINN’s TexLa wells produce at depths ranging from 7,000 feet to 11,500 feet.
Proved reserves for these mature, low-decline producing properties, represented approximately nine percent of total proved reserves at December 31, 2014, all of which were classified as proved developed. This region produced 48 MMcfe/d or four percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $6 million to develop the properties in this region. During 2015, the Company anticipates spending approximately 11 percent of its total oil and natural gas capital budget for development activities in the TexLa region.