HOUSTON, Sept. 7, 2010 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) today announced results from its third and fourth operated horizontal Granite Wash wells in the Greater Stiles Ranch area of the Texas Panhandle.
The Stein 1-3H well tested at a 24-hour production rate of 37.2 MMcfe/d, including estimated NGL recoveries and shrinkage associated with processing the natural gas. The production is comprised of 19.0 MMcf/d of natural gas and 1,487 Bbls/d of condensate at 1,510 psi flowing surface pressure. The natural gas production has a heating value of 1,287 Btu/cf, and when processed, should yield approximately 2,340 Bbls/d of natural gas liquids. The Company owns an approximate 60 percent working interest in the Stein 1-3H well.
The Thomas 5-8H well tested at a 24-hour production rate of 26.2 MMcfe/d, including estimated NGL recoveries and shrinkage associated with processing the natural gas. The production is comprised of 16.3 MMcf/d of natural gas and 640 Bbls/d of condensate at 1,350 psi flowing surface pressure. The natural gas production has a heating value of 1,234 Btu/cf, and when processed, should yield approximately 1,600 Bbls/d of natural gas liquids. The Company owns an approximate 60 percent working interest in the Thomas 5-8H well.
"We are extremely pleased with the results from our operated Granite Wash program, which has continued to exceed our expectations. The Black 50-1H well has been on production for 56 days and is currently producing at a rate of more than 40 MMcfe/d. The McMahan 22-2H well has been on production for 110 days and is currently producing at an approximate rate of 8 MMcfe/d. The average liquids component of the production stream on our four operated wells is more than 60 percent, of which a significant portion is condensate. As a result, all of these wells will generate rates of return that should exceed 100 percent," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy.
"Our capital program calls for 22 Granite Wash wells this year and significantly more next year as we increase our operated rig count to four in 2011. LINN is currently drilling two operated wells. The Granite Wash drilling program is a significant component of our organic growth strategy, which we believe will provide meaningful growth in our cash flow over the course of the next several years."
ABOUT LINN ENERGY
LINN Energy's mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. LINN Energy is an independent oil and natural gas development company, with approximately 2.4 Tcfe of proved reserves in producing U.S. basins as of year-end 2009 (pro forma for recently announced and closed acquisitions in 2010). More information about LINN Energy is available at www.linnenergy.com.
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This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include but are not limited to forward-looking statements about acquisitions and the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report filed on Form 10-K and other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.