Yet another Wolfberry acquisition was announced this morning by Linn Energy. This is just another in a long line of Permian Basin acquisitions this year by companies seeking reliable, relatively cheap oil production. In fact, this is the third time since December that Linn has purchased Permian Basin assets. This time it is $90 million for 950 BOEPD, mroe than 50 infill opportunities and 7 MMBOE in proved reserves.
This adds to Linn’s Wolfberry footprint and is described as “bolt-on acquisition in the Wolfberry trend”. Here is a map of Linn producing Permian Basin wells. The Wolfberry trend has sweet spots in the circled areas.
Companies are drawn to the Wolfberry trend in part because of the long productive life of these wells, particularly when they hit on the deeper Wolfcamp. The economics are good at about $1 million per well and the engineering is not too risky with vertical stimulation. Downspacing is the trend for the Wolfberry, as the operators have a vested interest in drilling as many infill wells as they can. Check back for more Wolfberry converage and DI users should check out the Wolfberry Unconventional Update. We have up to date info, saved searches, play overview and other quality Wolfberry stuff.
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