Houston-based MLP Linn Energy LLC (Nasdaq: LINE) has entered into two agreements to acquire certain oil and gas properties in the Permian Basin in West Texas and New Mexico from undisclosed sellers.
Assets include proved reserves of more than 12 million BOE (86% oil; 58% proved developed). Current production is approximately 1,350 BOE per day. The reserve-life index is more than 24 years.
Upside includes approximately 180 proved infill development and low-risk optimization projects.
“These acquisitions represent a strategic entry into the Permian Basin and demonstrate our commitment to grow through accretive acquisitions. The oil properties fit well within our current portfolio of long-life, low-risk assets and we believe that the Permian Basin will provide us with numerous acquisition opportunities for future growth,” says Michael C. Linn, chairman and chief executive.
Closing, expected by October 1, will be financed with borrowings under the company’s existing credit facility. Linn holds approximately 1.7 trillion cu. ft. equivalent of proved reserves.
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