A Texas company is injecting $400 million into a joint venture with Anadarko Petroleum Corp. to pump more oil out of the Salt Creek field in central Wyoming.
Under the terms of the deal announced last week, Houston-based Linn Energy LLC will receive in return for its investment a 23 percent interest in the field, which was discovered in the late 1880s but has begun a second life because of injections of carbon dioxide to force out hard-to-get oil.
Linn officials said they expect the joint venture to produce about 1,600 barrels of oil per day from the field in the first year and will work to double production from the field by 2015.
Anadarko obtained the Salt Creek field in 2002 and began injecting carbon dioxide, or CO2, into the field two years later, reviving the old field’s sagging production numbers.
Mark Ellis, chairman, president and chief executive of Linn Energy, said he considers the Salt Creek field a unique long-life asset.
“We are excited about this opportunity to partner with Anadarko in the Salt Creek field, where Anadarko has successfully implemented world-class CO2 enhanced oil recovery facilities and infrastructure to increase production,” he said in a media release.
“We also expect to greatly benefit from the knowledge we will gain by partnering with Anadarko, which has extensive experience in CO2 and enhanced oil recovery operations. We believe we have the potential to apply this knowledge and technology to several of our existing legacy oil fields.”
A call to an Anadarko representative wasn’t returned.
It’s Linn Energy’s first step into Wyoming. Linn has interests in 9,000 wells in the U.S., including North Dakota, Texas, New Mexico, Oklahoma, Kansas, Michigan, California and Illinois. Linn’s mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets, according to a company fact sheet.