By OGJ editors
HOUSTON, July 26 -- Linn Energy LLC, Pittsburgh, plans to acquire units of Blacksand Energy LLC in the Los Angeles basin for $291 million and Midcontinent assets of Kaiser-Francis Oil Co. in Oklahoma for $125 million.
Both acquisitions are expected to close on or before Aug. 15. The acquisitions will diversify Linn Energy's holdings from its core Appalachian gas operations to include oil properties in California and the Midcontinent.
Assets from Blacksand Energy, Houston, include 270 producing wells in Brea Olinda field in Orange County, Calif. The assets have proved reserves of 31.3 million boe, of which 90% is oil and 99% is proved developed.
The Kaiser-Francis assets include 411 producing wells in north-central Oklahoma with proved reserves of 54.5 bcf equivalent of gas, of which 84% is gas and 43% is proved developed. Kaiser-Francis is based in Tulsa.
At Dec. 31, 2005, Linn Energy's proved reserves were 99% gas. Pro forma for the acquisitions, Linn Energy's proved reserves will be at least 55% gas.