Linn Targets HighMount's Michigan Antrim Shale Assets For $330MM

Purchased properties in MI Antrim shale, gaining 30 MMcfe/d, 266 Bcfe proved.

Houston-based MLP Linn Energy LLC (Nasdaq: LINE) plans to acquire gas properties in the Antrim shale of northern Michigan from privately held HighMount Exploration & Production LLC, Houston, for $330 million.

The assets include 1,350 operated wells with current net production of approximately 30 million cubic feet of gas equivalent per day (99% gas). Proved reserves are more than 266 billion cubic feet equivalent (85% proved developed). The reserve life is 24 years. Upside includes some 300 proved low-risk drilling and optimization opportunities.

Linn president and chief executive Mark E. Ellis says, "We believe that the activity level of the acquisition market has dramatically increased in recent months. We expect the robust acquisition market to accelerate throughout the remainder of 2010, and the transactions we announced today will position us to capture opportunities as they become available."

Linn will fund the acquisition through debt and equity offerings.

Ellis adds, "Combining these quality assets with our high rate-of-return horizontal drilling program in the Granite Wash area and oil-focused projects in the Permian Basin balances our portfolio of opportunities moving forward. In addition, the equity offering and credit facility amendment announced today will provide us with the financial flexibility to continue pursuing growth through acquisitions."

Closing is expected by April 30. RBC Richardson Barr is advisor to HighMount.