It is the second agreement Linn has signed since emerging from bankruptcy in February this year.
Under the deal, Linn is selling the stake in assets situated in the San Joaquin Basin of California.
The company has so far executed sale agreements with contract prices of around $844.5m, which will be used to clear the outstanding borrowings under its revolving credit facility and term loan.
Located in Kern County, the divested California assets include around 500 total net acres in the South Belridge Field.
During the first quarter of this year, the asset’s net production was around 3,000 BOE/d. They also include proved developed reserves of ~11.7 MMBOE and proved developed PV-10 of around $168m.
Linn intends to invest around $21m for the development of these properties in the second half of the year.
Subject to the satisfaction of closing conditions, the deal is expected to complete by the end of this July.
In May 2016, Linn Energy filed for bankruptcy protection in the US, to reduce its debt amid plunging oil prices.
The firm has filed for Chapter 11 Bankruptcy protection in the US Bankruptcy Court for the Southern District of Texas following a signing of an agreement with senior creditors to restructure its $8.3bn debt.
Linn acquired Berry Petroleum for $4.3bn in 2013 in order to create one of the largest independent energy producers.
In October 2014, Linn agreed to sell its entire position in the Granite Wash and Cleveland plays located in the Texas Panhandle and western Oklahoma for a contract price of $1.95bn.
Image: Linn Energy to sell its certain assets in California for an undisclosed buyer. Photo: courtesy of LINN Energy, Inc.
