HOUSTON, Aug. 4, 2014 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) ("LINN" or "the Company") and LinnCo, LLC (Nasdaq:LNCO) ("LinnCo") announced today that LINN has signed a definitive purchase agreement to acquire assets in the Hugoton Basin from Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer") for a contract price of $340 million. The assets are currently producing approximately 40 MMcfe/d, approximately 60 percent of which is natural gas, with a shallow base decline of approximately six percent. Total proved reserves are estimated to be approximately 340 Bcfe (approximately 95 percent PDP). The asset package is comprised of approximately 235,000 net acres, all held by production, with approximately 1,200 producing wells. LINN has identified 180 future drilling locations and 150 recompletion opportunities. The Company anticipates the acquisition will close in the third quarter of 2014 with an effective date of July 1, 2014, and will be financed ultimately through the sale of producing and non-producing acreage in LINN's portfolio.
"This acquisition further strengthens LINN's significant position in the Hugoton Basin and reinforces our commitment to the previously announced strategic portfolio improvement plan," said Mark E. Ellis, Chairman, President and Chief Executive Officer. "Following our acquisition from BP in 2012, this year's announced trade with ExxonMobil, and today's announcement with Pioneer, LINN will become the largest producer in the field and will have pro forma production in the basin of approximately 275 MMcfe/d and two natural gas processing plants with capacity of 690 MMcfe/d. We also expect this acquisition to be accretive to excess of net cash provided by operating activities after distributions to unitholders."
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