LINN Energy reports production from third, fourth Granite Wash wells

Stein 1-3H, Thomas 5-8H horizontal wells producing at rates of 37.2 MMcfe/d, 26.2 MMcfe/d, respectively

HOUSTON – 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.

Stein 1-3H
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% working interest in the Stein 1-3H well.

Thomas 5-8H
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% working interest in the Thomas 5-8H well.

Comments 
"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%, of which a significant portion is condensate. As a result, all of these wells will generate rates of return that should exceed 100%," said Mark E. Ellis, president and CEO 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." 

Shares of the company were down -0.2901 (-0.9738%) at US$29.50 Tuesday afternoon.

Source: LINN Energy

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