Linn Energy Inc., Houston, signed an agreement to sell its interest in conventional properties in West Texas to an undisclosed buyer for $119.5 million.
The properties consist of 28,000 net acres in West Texas with 2017 net production of 6,300 boe/d, proved developed reserves of 14.4 million boe, and proved developed PV-10 of $106 million. Annualized field level cash flow is $32 million. Estimated annual general and administrative expense for the properties is $3 million, which is not included in the field level cash flow estimates.
The deal comes on the heels of a January agreement to sell interest in Altamont Bluebell field properties in the Uinta basin for $132 million as part of a noncore divestiture program ongoing since the company’s emergence from bankruptcy in February 2017 (OGJ Online, Jan. 16, 2018).
The West Texas asset sale is expected to close in this year’s first quarter with an effective date of Jan. 1, subject completion of title and environmental due diligence and closing conditions.