(Source: PrimeNewswire)
HOUSTON, Aug. 6, 2009 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) announced today that it signed two definitive purchase agreements to acquire certain oil and natural gas properties in the Permian Basin located in West Texas and New Mexico for a combined contract price of $118 million, subject to closing conditions and purchase price adjustments. The Company anticipates that both acquisitions will close before October 1, 2009, and will be financed with borrowings under LINN Energy's existing credit facility.
Significant characteristics of the combined assets are: * Current net production of approximately 1,350 barrels of oil equivalent per day; * Proved reserves of more than 12 million barrels of oil equivalent (approximately 86 percent oil and 58 percent proved developed); * Reserve life of more than 24 years; and * Inventory of approximately 180 proved infill development and low- risk optimization projects.
"These acquisitions represent a strategic entry into the Permian Basin and demonstrate our commitment to grow through accretive acquisitions," said Michael C. Linn, Chairman and Chief Executive Officer. "The oil properties fit well within our current portfolio of long-life, low-risk assets and we believe that the Permian Basin will provide us with numerous acquisition opportunities for future growth."
ABOUT LINN ENERGY
LINN Energy's mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life natural gas and oil assets. LINN Energy is an independent natural gas and oil development company, with approximately 1.7 Tcfe of proved reserves in producing U.S. basins as of year-end 2008. More information about LINN Energy is available at www.linnenergy.com.
This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include but are not limited to forward-looking statements about acquisitions and the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report filed on Form 10-K and other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
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CONTACT: LINN Energy, LLC Investors: Clay Jeansonne, Vice President - Investor Relations 281-840-4193 Media: Paula Beasley, Manager, Public Affairs & Communications 281-840-4183
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