HOUSTON, Sept. 18, 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) ("ExxonMobil") for operating interests in California's South Belridge Field. The transaction is expected to close in the fourth quarter of 2014 with an effective date of June 1, 2014.
Significant benefits LINN expects to receive from the ExxonMobil trade:
- Excellent mature assets with a decline rate of approximately ten percent and reserve life of approximately 22 years;
- Hill Property currently generates more operating cash flow than Permian Basin properties traded and is expected to be accretive to excess of net cash provided by operating activities after distributions to unitholders;
- Total resource potential of approximately 67 MMBoe and approximately 27 MMBoe of proved reserves;
- Approximately 300 future drilling locations, significantly increasing the Company's California inventory;
- Tax efficient exchange of assets; and
- Credit positive from increased cash flow 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