HOUSTON, Sept. 12, 2013 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) and LinnCo, LLC (Nasdaq:LNCO) announced today that LINN Energy signed a definitive purchase agreement to acquire oil and natural gas properties located in the Permian Basin for a contract price of $525 million, subject to closing conditions. The Company anticipates the acquisition will close during the fourth quarter of 2013 and will be financed primarily with proceeds from a committed term loan to be entered into at closing.
"This bolt-on acquisition in the Permian Basin is an attractive addition to our assets in the area. This acquisition increases our exposure to oil and adds more than 300 proved low-risk infill drilling opportunities as well as future waterflood potential," said Mark E. Ellis, Chairman, President and Chief Executive Officer. "We expect this transaction will be immediately accretive to cash available for distribution."
Significant characteristics expected from the acquisition:
- Estimated first twelve months net production of approximately 4,800 Boe/d primarily from the Clearfork formation (approximately 63 percent oil)
- Low operating expenses of approximately $15.00 per Boe
- Operated with approximately 98 percent working interest
- Proved reserves of approximately 30 MMBoe (approximately 70 percent oil)
- Reserves to production ratio of approximately 17 years
- Future additional waterflood reserve potential of approximately 24 MMBoe
- Approximately 124 producing wells and more than 6,250 net acres
- Approximately 300 identified future low–risk, infill drilling locations