The company anticipates that the acquisition will close by the end of May 2010, and will be financed with proceeds from borrowings under its revolving credit facility.
Mark Ellis, president and CEO of Linn Energy, said: “This bolt-on acquisition is expected to double Linn’s oil production and reserves in the Permian basin and significantly increases our presence in this area.
“With approximately 120 proved low-risk infill drilling and optimization opportunities, this acquisition also offers the potential for significant growth of oil production.”
Some of the characteristics of the assets include: proved reserves of approximately 18 million barrels of oil equivalent (approximately 71% oil); reserve life of approximately 17 years; approximately 120 proved low-risk infill drilling and optimization opportunities; and a sizable entry into the Wolfberry oil play.
