Linn Energy, an independent oil and natural gas development company, has signed three definitive agreements to acquire oil and natural gas properties located in the Wolfberry trend of the Permian Basin for a combined price of $352.2m.
The acquisitions are expected to close before the end of November 2010, and will be financed with proceeds from borrowings under the company's revolving credit facility.
Linn Energy president and CEO Mark Ellis said that pro forma for these transactions, Linn's Permian Basin production is approximately 10,000 barrels of oil equivalent per day, and proved reserves are more than 74 million barrels of oil equivalent, with a high liquids content of approximately 76 per cent, and are 41 per cent proved developed.
Some of the characteristics of the three acquisitions include: net production of approximately 3,300 barrels of oil equivalent per day (73 per cent oil; proved reserves of approximately 30 million barrels of oil equivalent (72 per cent oil); and more than 230 Wolfberry drilling locations representing proved undeveloped reserves of 23 million barrels of oil equivalent.
