Under the terms of the agreement, Linn Energy will sell its stake in Granite Wash and Cleveland plays to privately held institutional affiliates of EnerVest.
Linn also signed a definitive agreement to sell its Wolfberry positions in Ector and Midland counties in the Permian Basin to Fleur de Lis Energy for a contract price of $350m.
The sale proceeds will be used by Linn to finance its $2.3bn acquisition of assets from Devon Energy, which closed in August 2014.
Linn will sell the Granite Wash and Cleveland properties which include approximately 145,000 net acres, 195 MMcfe/d of current production, 755 Bcfe of year-end 2013 proved reserves and related midstream facilities.
Currently, Linn is running a 4-rig drilling program and plans to spend approximately $210m of capital on these assets in 2014.
The Permian Basin properties to be sold include approximately 7,200 net acres, 4.6 MBoe/d of current production and 19 MMBoe of year-end 2013 proved reserves while the company is running a 2-rig vertical drilling program and plans to spend approximately $95m of capital on these assets in 2014.
Upon closing of transaction, Linn will retail production of approximately 8.0 MBoe/d and approximately 6,600 net acres in the Midland Basin that is prospective for horizontal Wolfcamp drilling.
The sale of Granite Wash and Cleveland properties as well as Permian Basin properties is expected to close in the fourth quarter of 2014.
