LINN Energy has a diverse U.S. asset base with core focus areas in the Rockies, the Mid-Continent, the Hugoton Basin, California, the Permian Basin, Michigan, Illinois and east Texas.
As of December 31, 2013, LINN had over 19,000 gross productive oil and natural gas wells and an average proved reserve-life index of approximately 16 years. Additionally, the Company has access to approximately 6.4 Tcfe of proved reserves, of which approximately 34 percent are oil, 47 percent are natural gas and 19 percent are NGL.
During 2013, LINN spent approximately $1.17 billion on its oil and natural gas capital program, drilling 559 gross wells and completing numerous workover and recompletion projects. The Company demonstrated its ability to grow organically through the addition of 527 Bcfe of proved reserves, primarily as a result of the Mid-Continent, Green River, Hugoton and Williston Basin drilling programs.
In 2014, the Company anticipates spending approximately $1.55 billion on oil and natural gas projects. LINN expects to spend approximately 25 percent of its total oil and natural gas capital budget for development activities in the Permian Basin region, with approximately 67 percent of the Permian capital focused on the Midland Basin. This capital will be focused on Wolfberry verticals, Clearfork development in the East Goldsmith field and Wolfcamp horizontals. Additionally, 17 percent of the oil and natural gas capital budget is allocated to California, 14 percent to the Jonah Field, 13 percent to Uinta, 11 percent to the Granite Wash/Hogshooter, seven percent to the Williston Basin, four percent to Salt Creek and three percent to Hugoton. The Company anticipates spending the remaining six percent of the oil and natural gas capital budget on other operating areas.
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