Courtesy of Benzinga.
LINN Energy, LLC (Nasdaq: LINE) announced today a 2012 oil and natural gas capital program of $880 million. The capital program will be focused primarily on low-risk, high-rate-of-return, liquids drilling.
The company expects to drill or participate in approximately 340 wells in 2012. Approximately 53 percent of its capital program will be allocated to the Granite Wash to drill or participate in 75 horizontal wells, 23 percent to the Permian Basin to drill or participate in almost 100 wells, 6 percent to the Bakken and 6 percent to the Cleveland play. The balance of the capital program will primarily focus on workover, recompletion, optimization and facilities projects.
The company strengthened its commodity hedge positions and fully hedged production volumes associated with its Granite Wash acquisition. Based on current production estimates, expected natural gas production is 100 percent hedged at prices above $5.45 per Mcf through 2015. Expected oil production is 100 percent hedged at prices above $97 per Bbl through 2013 and approximately 80 percent at prices above $95 per Bbl in 2014 and 2015.
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