LINN Energy to buy BP's Hugoton holdings for $1.2 billion

By OGJ editors

LINN Energy LLC, Houston, will acquire BP America Production Co.’s in giant Hugoton field in southwestern Kansas for $1.2 billion with closing by Mar. 30.

The properties are producing 110 MMcfd of gas equivalent, 37% natural gas liquids, from 730 bcfe of proved reserves. The properties are 98% operated and include full ownership of the 450 MMcfd Jayhawk natural gas processing plant, whose throughput has been about half of capacity (OGJ, June 6, 2011, p. 88).

Hugoton is the largest US conventional gas field in terms of ultimate recovery, and the BP properties have a 7% decline rate and 18-year reserve life, LINN Energy said.

The properties are 81% proved developed producing with 2,400 operated wells on more than 600,000 contiguous net acres and more than 800 future drilling locations. Estimated 2012 maintenance capital is $30-40 million.

LINN Energy pointed out that it is fully hedged for 5 years for 100% of its natural gas production and 68% of NGL production, utilizing natural gas puts.

Related Articles

WINTER HITS U.S. INDUSTRY, STRAINS GAS SUPPLY

01/01/1990 A record breaking cold front before and during the weekend of Dec. 23 shut down several major refineries and petrochemical plants in the U.S. Gulf ...

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

OWNERSHIP QUESTIONS CAN STYMIE DEVELOPMENT OF COALBED METHANE

01/01/1990 Although the technology exists for commercial recovery of coalbed methane, production has been hindered because of the legal quandary as to ownersh...

TEX/CON, SPUN OFF FROM BP, UP AND RUNNING

01/01/1990 BP Exploration Western Hemisphere has spun off its U.S. Lower 48 onshore exploration/development and gas gathering, transportation, and marketing a...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected