HOUSTON, May 21, 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 agreement to trade a portion of its Permian Basin properties to Exxon Mobil Corporation (NYSE:XOM) and its wholly owned subsidiary XTO Energy Inc. (collectively, "ExxonMobil") for operating interests in the Hugoton Basin. The transaction is expected to close in the third quarter of 2014 with an effective date of June 1, 2014.
Significant characteristics LINN expects to receive from the ExxonMobil trade:
- Excellent mature assets with a decline rate of approximately six percent and reserve life of approximately 22 years;
- Approximately 400 future drilling locations, doubling the Company's inventory in Hugoton Field;
- LINN becomes the largest producer in Hugoton Basin;
- Potential future synergies from additional throughput into LINN's Jayhawk natural gas processing plant;
- Tax efficient exchange of assets; and
- Credit positive from increased cash flow, production and reserves.
CONTACT: LINN Energy, LLC and LinnCo, LLC Investors and Media: Clay Jeansonne, Vice President, Investor and Public Relations 281-840-4193 Zach Dailey, Director, Investor Relations 713-904-6547 Sarah Nordin, Public Relations & Media 713-904-6605