LINN Snaps Up Permian, Anadarko Basin Properties for $154.5MM
LINN Energy signed a definitive purchase agreement to acquire certain oil and natural gas properties in the Permian and Anadarko Basins for a contract price of $154.5 million, subject to closing conditions. The Company anticipates that the acquisition will close on or before January 29, 2010, and will be financed with borrowings under LINN Energy's existing credit facility.
Significant characteristics of the assets are:
- Current net production of approximately 1,700 barrels of oil equivalent per day (approximately 73 percent liquids);
- Proved reserves of more than 12 million barrels of oil equivalent (approximately 80 percent liquids and 80 percent proved developed);
- Reserve life of approximately 20 years;
- Low decline rate of approximately 6 percent; and
- Approximately 100 proved low-risk infill drilling and optimization opportunities.
"This acquisition increases our exposure to oil, which offers very attractive margins in the current commodity price environment," said Michael C. Linn, Chairman and Chief Executive Officer of LINN Energy. "The long-life, low-decline characteristics and geographic location of these properties make them an attractive addition to our asset portfolio in the Permian and Mid-Continent areas."
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