WASHINGTON (dpa-AFX) - LINN Energy, LLC (LINE) announced a joint-venture agreement with an affiliate of Anadarko Petroleum Corp. (APC), whereby LINN will participate as a partner in the CO2 enhanced oil recovery development of the Salt Creek field, located in the Powder River Basin of Wyoming.
Anadarko assigned LINN 23 percent of its interest in the field in exchange for future funding of $400 million of Anadarko's development costs.
LINN said it expects to invest a total of $600 million, over the next three to six years. The investment includes the $400 million of Anadarko's costs and $200 million net to LINN's assigned interest.
LINN noted that Anadarko has been utilizing CO2 to develop this field since 2004 with outstanding results, and additional development associated with this joint venture is expected to double current production by 2015.
The joint venture is expected to be immediately accretive to distributable cash flow per unit. LINN said it expects Average net production of approximately 1,600 BOPD in first 12 months from the joint venture.
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