2009-09-18-2009-08-06-2009-08-06

To acquire Permian Basin properties in W. TX, NM in 2 deals, gaining 12 MMBOE proved, 1,350 BOE/d.

Houston-based MLP Linn Energy LLC (Nasdaq: LINE) has entered two agreements to acquire certain oil and gas properties in the Permian Basin in West Texas and New Mexico from undisclosed sellers for a combined price of $118 million. These assets include proved reserves of more than 12 million barrels of oil equivalent (86% oil; 58% proved developed). Current production is approximately 1,350 barrels of oil equivalent per day. The reserve-life index is more than 24 years. Upside includes approximately 180 proved infill development and low-risk optimization projects. Linn chairman and chief executive Michael C. Linn says, "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." Closing is expected by Oct. 1 and will be financed with borrowings under the company's existing credit facility. Linn holds approximately 1.7 trillion cubic feet equivalent of proved reserves.