2010-04-05-2010-03-29-2010-05-27

Bought properties in TX Permian Basin, gaining 2,800 BOE/d, 18 MMBOE proved.

Linn Energy LLC, Houston, (Nasdaq: LINE) plans to buy oil and natural gas properties in the Permian Basin from Midland, Texas-based, privately held Henry Resources LLC for $305 million.

The assets included approximately 120 proved infill drilling and optimization opportunities and a sizable entry into the prolific Wolfberry oil play in Andrews, Ector, Midland and Upton counties. Net production as of mid-year 2010 is expected to be approximately 2,800 barrels of oil equivalent per day (more than 75% oil). Proved reserves are expected to be approximately 18 million barrels of oil equivalent (approximately 71% oil).

RBC Richardson Barr estimates the transaction value at $108,930 per BOE per day.

Linn president and chief executive Mark Ellis says, "This bolt-on acquisition is expected to double LINN's oil production and reserves in the Permian Basin and significantly increases our presence in this area. With approximately 120 proved low-risk infill drilling and optimization opportunities, this acquisition also offers the potential for significant growth of oil production. Additionally, this transaction will be immediately accretive to cash flow per unit upon closing."

The company plans to fund the purchase price with borrowings from its revolving credit facility. The deal is expected to close by May 27.