LINN Energy Snaps Up Properties in Permian Basin
LINN Energy signed two definitive purchase agreements to acquire certain oil and natural gas properties in the Permian Basin located in West Texas and New Mexico for a combined contract price of $118 million, subject to closing conditions and purchase price adjustments. The Company anticipates that both acquisitions will close before October 1, 2009, and will be financed with borrowings under LINN Energy's existing credit facility.
Significant characteristics of the combined assets are:
- Current net production of approximately 1,350 barrels of oil equivalent per day;
- Proved reserves of more than 12 million barrels of oil equivalent (approximately 86 percent oil and 58 percent proved developed);
- Reserve life of more than 24 years; and
- Inventory of approximately 180 proved infill development and low-risk optimization projects.
"These acquisitions represent a strategic entry into the Permian Basin and demonstrate our commitment to grow through accretive acquisitions," said Michael C. Linn, Chairman and Chief Executive Officer. "The oil properties fit well within our current portfolio of long-life, low-risk assets and we believe that the Permian Basin will provide us with numerous acquisition opportunities for future growth."
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