Linn Energy has entered into an agreement to acquire oil and natural gas properties in the US states of Texas and Oklahoma for $220m.

Under the deal, the company will buy 40% of the oil and gas properties of Panther Energy and Red Willow Mid-Continent, located in Ochiltree and Lipscomb counties, Texas, and Ellis County, Oklahoma.

The assets, which spread over 140,000 gross acres, have a net production of about 2,700 barrels of oil equivalent per day from approximately 170 producing wells and proved reserves of about 10 million barrels of oil equivalent.

The acquisition, which is expected to close on or before 1 June 2011, will be financed with net proceeds from a senior notes offering, the company said.