LINN has signed three definitive purchase agreements to acquire oil properties for a total combined contract price of $434 million, subject to closing conditions. One acquisition of non-operated properties marks LINN's entry into the Bakken play, located in the Williston Basin of North Dakota. The additional two are bolt-on acquisitions, which further expand the Company's position in the Permian Basin of Texas and New Mexico.
The Company signed a definitive purchase agreement to acquire certain oil properties in the Bakken play from Concho Resources for a contract price of $196 million, subject to closing conditions. The Company anticipates this acquisition will close on or before March 31, 2011. The properties are expected to add current net production of approximately 1,350 Boe/d (94 percent oil), proved reserves of approximately 8 MMBoe (83 percent oil) and more than 400 potential oil drilling locations.
The Company also signed two definitive purchase agreements to acquire certain oil properties for a total combined contract price of $238 million, subject to closing conditions. The Company anticipates these acquisitions will close during the first week of April 2011. The properties are all located within the Permian Basin and several are located within the Wolfberry trend. They are expected to add current net production of approximately 1,650 Boe/d (87 percent oil and NGLs), provide reserves of approximately 14 MMBoe (88 percent oil and NGLs) and approximately 180 potential oil drilling locations.
"The Bakken acquisition provides LINN with a foothold position in a premier oil basin with vast resource potential. The non-operated nature of the deal allows us to accelerate our knowledge in the play from high-quality operators and reduces execution risk in the development of more than 400 highly economic drilling opportunities. Finally, the deal positions us in another oil basin with numerous mature producing assets providing LINN with the opportunity for further consolidation," said Mark E. Ellis, President and Chief Executive Officer. "The bolt-on acquisitions in the Permian Basin significantly bolster the Company's existing Permian position and increase the Company's exposure to oil. All of these properties generate high cash margins in the current oil environment and meaningfully add to our inventory of oil drilling locations. These transactions will be immediately accretive."
Combined Statistics of Three Acquisitions Totaling $434 Million
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