Linn Energy is one of the most active operators in the Granite Wash trend area in the Texas Panhandle. They have 77 operated wells that have come online since 2008. Until this year Linn has been drilling vertical wells. According to their most recent company presentation they are drilling 10 horizontal wells (7 op, 3 non-op) in 2010. They will spend $53MM in CAPEX and increase from 1 rig currently, to 2 at YE2010. They have identified greater than 100 horizontal locations.
The Granite Wash contains multiple producing zones. Below is a chart from their May 12th presentation highlighting the zones. The Atoka below is a dry gas producer. Many of the zones in the Granite Wash have a substantial liquid output and many companies are drilling these areas for those liquids.
Here is a map of the 77 Linn Energy producing Granite Wash trend area wells, once again these are all vertical. The map is colored by cumulative produced gas and bubbled by maximum monthly gas production. Many of these wells have achieved greater than a quarter Bcf of production, with the stronger wells located near the OK TX border.
Linn is high on their Granite Wash acreage as they quoted 6-8 Bcfe per horizontal well and a payback period of 3-12 months depending on initial rates. They also state that 40%-50% of the production is liquids. Check the Granite Wash Unconventional Update for all things Granite Wash.
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