The company anticipates that the acquisition will close on or before January 29, 2010, and will be financed with borrowings under Linn Energy’s existing credit facility.
Michael Linn, chairman and CEO of Linn Energy, said: “This acquisition increases our exposure to oil, which offers very attractive margins in the current commodity price environment.
“The long-life, low-decline characteristics and geographic location of these properties make them an attractive addition to our asset portfolio in the Permian and Mid-Continent areas.”
Some of the characteristics of the assets include: current net production of approximately 1,700 barrels of oil equivalent per day (approximately 73% liquids); proved reserves of more than 12 million barrels of oil equivalent (approximately 80% liquids and 80% proved developed); and reserve life of approximately 20 years.
