By OGJ editors
HOUSTON, Mar. 31 -- Linn Energy LLC, Houston, has agreed to spend $305 million to acquire more oil and gas properties in the Permian basin, saying the acquisition is expected to double its production in that basin.
This acquisition follows closely to a recent agreement for Linn to acquire gas properties in the Antrim shale of northern Michigan from HighMount Exploration & Production LLC for $330 million (OGJ Online, Mar. 29, 2010). This latest acquisition gives Linn what it calls “a sizable entry” into the Wolfberry oil play. Closing is expected by May 27.
“With approximately 120 proved low-risk infill drilling and optimization opportunities, this acquisition also offers the potential for significant growth of oil production,” said Mark Ellis, Linn president and chief executive officer.
By June 30, net production is expected to be 2,800 boe/d with more than 75% of that being oil. The company expects to report proved reserves of 18 million boe.