Linn has signed a definitive purchase agreement to acquire mid-continent oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma from Plains Exploration & Production Company (PXP) for a contract price of $600 million, subject to closing conditions. The Company anticipates the acquisition will close on or before Dec. 31, 2011, and will be financed with internally generated cash flow and proceeds from borrowings under its revolving credit facility.
"This acquisition represents substantially all of Plains' assets in the Mid-Continent region including mature stable assets and an outstanding position in the Granite Wash. This transaction will double Linn's current inventory of horizontal drilling locations to more than 400 in the Granite Wash" said Mark E. Ellis, President and Chief Executive Officer. "We expect to yield significant operational efficiencies in the Granite Wash as we leverage our pad drilling techniques, simultaneous-operations processes, and recently built gas gathering and water handling infrastructure."
Benefits of this transaction to Linn:
Significant characteristics of the assets:
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