The MLP Linn Energy LLC, Houston, (Nasdaq: LINE) has reported an initial production rate of 19.4 million cubic feet of gas equivalent per day from its first operated horizontal Granite Wash well in the Texas Panhandle. To date, the company has drilled five horizontal Granite Wash wells, two operated and three nonoperated.

McMahan 22-2H has tested a production rate of 10.8 million cubic feet and 634 barrels of condensate per day during a 24-hour period. The gas production has a heating value of 1,300 Btu/cf and, when processed, should yield approximately 1,250 barrels of natural gas liquids per day.

Including estimated NGL recoveries and shrinkage associated with gas processing, McMahan 22-2H has an initial production rate of approximately 19.4 million cubic feet equivalent per day.

Linn Energy holds a 57% working interest in McMahan 22-2H, which was drilled with a horizontal lateral of approximately 4,100 feet and completed with a 12-stage fracture stimulation. The well was drilled and completed for roughly $7 million.

In the Granite Wash trend in the Texas Panhandle and southwestern Oklahoma, Linn Energy holds approximately 73,000 net acres. More than 100 drilling locations have been identified in the Texas Panhandle alone.

Currently, the company is preparing its second recently drilled and operated Granite Wash well, Black 50-1H, for completion operations in early July. The company holds a 63% working interest in the well. Additionally, Linn Energy has secured a second drilling rig for its drilling program slated for mid-June, which includes eight additional Granite Wash wells.

Linn Energy president and chief executive Mark Ellis says, "Given the successful completion of our first well and drilling of our second well, we have elected to accelerate our Granite Wash drilling program, which is expected to generate significant organic production growth for the company."