The company anticipates the acquisition will close on or before August 16, 2010, and will be financed with internally generated cash flow and proceeds from borrowings under its revolving credit facility.
Mark Ellis, president and CEO of Linn Energy, said: “This bolt-on acquisition in the Wolfberry trend of the Permian Basin is an attractive addition to our recently acquired assets in this area.
“This acquisition increases our exposure to oil and adds more than 50 proved low-risk infill drilling opportunities, which could be significantly increased as a result of further downspacing. This transaction will also be immediately accretive to cash flow per unit.”
Some of the characteristics of the assets include: net production of approximately 950 barrels of oil equivalent per day; proved reserves of approximately seven million barrels of oil equivalent (approximately 78% oil); reserve life of 19 years; and more than 50 proved low-risk oil infill drilling locations.
Linn Energy is an independent oil and natural gas development company, with approximately 1.7tcfe of proved reserves in producing US basins as of year-end 2009.
