By Houston Business Journal

LINN Energy LLC has signed an agreement to purchase oil and natural gas properties in the Permian Basin, the company said Thursday.

The $90 million deal is set to close by mid-August. The properties feature a net production of 950 barrels of oil per day, proven reserves of about 7 million barrels of oil equivalent and a reserve life of 19 years.

"This bolt-on acquisition in the Wolfberry trend of the Permian Basin is an attractive addition to our recently acquired assets in this area," says Mark Ellis, president and chief executive officer at LINN. "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."

At the time of writing, Houston-based LINN Energy (Nasdaq: LINE) hadn't responded to inquires about who they bought the property from.

Copyright 2010 American City Business Journals
Copyright 2010