Linn Energy LLC agreed to buy BP America Production Co.’s holdings in Jonah and Pinedale natural gas fields for $1 billion in a cash transaction expected to close by July 31, subject to all necessary governmental and regulatory approvals.
“This acquisition provides Linn with a significant operated position in the Green River basin of Wyoming,” said Mark E. Ellis, Linn Energy chairman, president, and chief executive officer. The properties are expected to provide 145 MMcfd equivalent of liquids-rich natural gas production, Ellis added.
Bob Dudley, BP PLC chief executive officer, said, “This sale will allow us to realize the value of the mature Jonah assets and reinvest in higher growth opportunities in BP’s North America gas business and elsewhere.”
Since January 2010, BP has divested $24 billion. BP expects the total will reach $38 billion by yearend 2013.
Lynn Energy is buying BP’s operations center in Sublette County, Wyo., and all of BP’s working interest in 260 operated wells with recent net BP natural gas production of 80 MMscfd of gas equivalent and nonoperated wells with recent net BP production of 66 MMscfd.
BP said its production operations in Moxa and Wamsutter, Wyo., are unaffected by the sale.