Linn Energy to buy Dominion's Midcontinent E&P assets
Linn Energy LLC agreed to buy certain natural gas and oil exploration and production operations in the MidContinent from Dominion for $2.05 billion.
By OGJ editors
HOUSTON, July 2 -- Linn Energy LLC agreed to buy certain natural gas and oil exploration and production operations in the MidContinent from Dominion for $2.05 billion.
These operations, primarily in Okalahoma, include reserves of 780 bcf of proved gas equivalent as of Dec. 31, 2006. The transaction is expected to close by the end of the third quarter.
Last year the Richmond, Va.-based electric and gas utility announced plans to divest its E&P operations except for 1 tcf of estimated proved gas reserves in the Appalachian basin (OGJ, June 11, 2007, p. 32).
With the Linn transaction, Dominion now has sold or agreed to sell all the operations that it plans to divest. All other previously announced E&P sales have closed or are scheduled to close by that time.
Dominion wants to focus on its businesses in electric power generation, gas distribution, transmission, storage, and retail marketing.