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Product Manager - Derrick Petroleum Services. Working in Oil & Gas Industry for 5+ years. Contributed significantly for Database development for Upstream transactions ( Initially worked as a 'Research Analyst' at Reuters. LinkedIn Profile:... More
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  • Linn Mulls Options For Midland Basin Assets 0 comments
    Feb 28, 2014 6:12 AM | about stocks: LINEQ

    Linn Energy announced that it is evaluating multiple strategic alternatives in the Midland Basin portion of its Permian acreage, including asset trades, a cash sale and joint ventures.

    Asset details

    · Covers 55,000 net acres in the A and B benches of the Wolfcamp formation

    · Total production of 17 MBOE/d from 1,275 wells, held with an average 88% WI

    · 630 (gross) operated potential locations with an average 95% WI held by production; additional 455 (gross) potential locations which will require forming a unit

    All potential options are targeted to increase cash available for distribution and will also have the potential to lower the company's overall decline rate and capital intensity.

    At the same time, Linn is pursuing a horizontal drilling program in the Midland Basin. The company plans to drill approximately ten horizontal wells targeting the Wolfcamp B zone beginning in early Q2-2014.

    This follows the announcement made by the company in Dec-2013 that it is considering strategic alternatives for its Permian Basin assets.

    In September 2013, Linn acquired Permian Basin assets for $525 million.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: LINEQ
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