2010-07-19-2010-07-19

To acquire 350 operated producing wells in East Texas Oil Field, gaining 900 BOE/D (93% oil).

Houston MLP Linn Energy LLC (Nasdaq: LINE) plans to acquire oil and natural gas properties in East Texas Oil Field from an undisclosed seller for $95 million.

The assets include more than 350 operated producing wells and current net production of approximately 900 barrels of oil equivalent per day (93% oil) in Gregg and Rusk counties. The properties have proved reserves of 8 million barrels equivalent (100% proved developed), with a reserve life of more than 25 years and a low decline rate of 5%. More than 95 proved low-risk workover opportunities have been identified.

Linn will finance the acquisition with its cash flow and proceeds from its revolving credit facility. The deal is expected to close by Oct. 1.

Linn president and chief executive Mark E. Ellis says, "This acquisition is a good fit for our existing portfolio of assets and provides an opportunity for the company to enter a new operating area. The acquired properties have a reserve life of more than 25 years and an approximate five percent decline rate. We also expect this new area to provide Linn with potential future consolidation opportunities."