2010-07-01-2010-07-01

To acquire 950 barrels of oil equivalent per day and proved reserves of 7 million BOE (78% oil) in Wolfberry trend in Permian Basin.

Houston MLP Linn Energy LLC (Nasdaq: LINE) is adding to its Permian Basin position targeting the Wolfberry trend with a $90-million acquisition from an undisclosed seller.

The assets include some 950 barrels of oil equivalent per day and proved reserves of 7 million BOE (78% oil). The assets have a reserve life of 19 years and the acquisition involves more than 50 proved infill drilling locations.

"This bolt-on acquisition in the Wolfberry trend of the Permian Basin is an attractive addition to our recently acquired assets in this area," says Linn president and chief executive Mark Ellis. "This acquisition increases our exposure to oil and adds more than 50 proved low-risk infill drilling opportunities, which could be significantly increased as a result of further downspacing."

Linn plans to finance the deal with cash flow and its revolving credit facility. It is expected to close by Aug. 16.

Linn entered the Permian Basin in second-half 2009 with two acquisitions totaling $272 million and, in May, acquired 18 MMBOE proved in the Permian for $305 million from Henry Resources LLC.