Linn Energy LLC, Houston, (Nasdaq: LINE) reports its 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 (million cubic feet equivalent per day (MMcfe/d), including estimated NGL recoveries and shrinkage associated with processing the natural gas. The production comprises 19 million cubic feet of gas per day (MMcf/d) and 1,487 barrels of condensate per day (B/d) at 1,510 psi flowing surface pressure. The 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 Stein 1-3H.
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 comprises 16.3 MMcf/d and 640 Bbls/d at 1,350 psi flowing surface pressure. The 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 Thomas 5-8H.
"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%," says Linn president and chief executive Mark E. Ellis.
"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."
Recommended Reading
E&P Highlights: Oct. 28, 2024
2024-10-28 - Here’s a roundup of the latest E&P headlines, including a new field coming onstream and an oilfield service provider unveiling new technology.
Navigating the Crossroads: Oil, Gas Industry Reimagines its Role in Tech Age
2024-10-28 - The oil and gas industry has both a need and an opportunity to embrace the digital transformation while engaging the next generation of its workforce.
Baker Hughes to Supply Petrobras' Presalt Fields with Flexible Pipe Systems
2024-10-28 - Baker Hughes said the systems will look to address the issue of corrosion cracking from CO2, which can arise as gas is reinjected into wells.
Nabors Takes to Global Expansion in 3Q as Rig Count Shrinks in Lower 48
2024-10-25 - Nabors Industries saw broad growth across key international geographies in third-quarter 2024, with more rig deployments expected.
Baker Hughes: US Oil, Gas Rig Count Steady This Week, Down Two in October
2024-10-25 - U.S. energy firms kept the number of oil and natural gas rigs unchanged this week.