LINN Acquires Atrim Shale Properties for $330MM
LINN Energy signed a definitive purchase agreement on March 21, 2010, to acquire natural gas properties in the Antrim Shale of northern Michigan from HighMount Exploration & Production LLC for a contract price of $330 million, subject to closing conditions. The Company anticipates that the acquisition will close on or before April 30, 2010.
"We believe that the activity level of the acquisition market has dramatically increased in recent months. We expect the robust acquisition market to accelerate throughout the remainder of 2010, and the transactions we announced today will position us to capture opportunities as they become available," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy.
Attractive Characteristics of Antrim Shale Assets
- Current net production of approximately 30 MMcfe/d (approximately 99 percent natural gas)
- Proved reserves of more than 266 Bcfe (85 percent proved developed)
- Reserve life of approximately 24 years
- Low decline rate of approximately 6 percent
- 1,350 operated wells
- Approximately 300 proved low-risk drilling and optimization opportunities
Mr. Ellis added, "The Antrim Shale properties are excellent additions to our asset base, with a low decline rate and current production of approximately 30 million cubic feet of natural gas per day. These properties also offer upside potential through low-risk drilling and optimization opportunities. Combining these quality assets with our high rate-of-return horizontal drilling program in the Granite Wash area and oil-focused projects in the Permian Basin balances our portfolio of opportunities moving forward. In addition, the equity offering and credit facility amendment announced today will provide us with the financial flexibility to continue pursuing growth through acquisitions."
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