Linn Acquires Permian Basin Assets for $525 Million
Linn Energy signed an agreement to acquire Permian Basin assets for $525 million. The assets include more than 300 proved low-risk infill drilling opportunities as well as future waterflood potential.Asset HighlightsCovers 6,250 net acres including approximately 124 producing wellsEstimated net production (in...
Linn Acquires Permian Basin Assets for $525 Million
Global Deals, Headlines, OthersLinn Energy signed an agreement to acquire Permian Basin assets for $525 million. The assets include more than 300 proved low-risk infill drilling opportunities as well as future waterflood potential.
Asset Highlights
- Covers 6,250 net acres including approximately 124 producing wells
- Estimated net production (in the next 12 months) of 4.8 MBOE/d (63% oil) from the Clearfork formation
- 1P reserves 30 MMBOE (70% oil) with future additional waterflood reserve potential of approximately 24 MMBOE
September 12, 2013
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Linn Energy acquires BP?? Kansas assets for $1.2BGlobal Deals
- Gas rich property located in Hugoton basin
- Production of ~110 MMcf/d (98% operated, 63% gas, 37% NGL) and Proved Reserves of ~730 Bcf (81% PDP)
- Includes 100% ownership of the Jayhawk Natural Gas Processing Plant (450 MMcf/d of processing capacity).
View Detailed Analysis in the Global M&A Database.
February 27, 2012 - Linn Mulls Options for Midland Basin Assets
Linn Energy announced that it is evaluating multiple strategic alternatives in the Midland Basin portion of its Permian acreage, including asset trades, a cash sale and joint ventures. Asset detailsCovers 55,000 net acres in the A and B benches of the Wolfcamp formationTotal production of 17 MBOE/d from...
Linn Mulls Options for Midland Basin Assets
Global Deals, OthersLinn Energy announced that it is evaluating multiple strategic alternatives in the Midland Basin portion of its Permian acreage, including asset trades, a cash sale and joint ventures.
Asset details
- Covers 55,000 net acres in the A and B benches of the Wolfcamp formation
- Total production of 17 MBOE/d from 1,275 wells, held with an average 88% WI
- 630 (gross) operated potential locations with an average 95% WI held by production; additional 455 (gross) potential locations which will require forming a unit
All potential options are targeted to increase cash available for distribution and will also have the potential to lower the company's overall decline rate and capital intensity.
At the same time, Linn is pursuing a horizontal drilling program in the Midland Basin. The company plans to drill approximately ten horizontal wells targeting the Wolfcamp B zone beginning in early Q2-2014.
This follows the announcement made by the company in Dec-2013 that it is considering strategic alternatives for its Permian Basin assets.
February 28, 2014 - ExxonMobil, Linn Swap Assets in Hugoton, Permian Basin
ExxonMobil has entered into an agreement with Linn Energy to swap a portion of its operating interests in the Hugoton Basin, for a portion of Linn’s Permian Basin properties. The agreement is expected to close in Q3-2014.ExxonMobil will receive:Approximately 25,000 net acres in the Permian Basin,...
ExxonMobil, Linn Swap Assets in Hugoton, Permian Basin
Global Deals, Headlines, OthersExxonMobil has entered into an agreement with Linn Energy to swap a portion of its operating interests in the Hugoton Basin, for a portion of Linn’s Permian Basin properties. The agreement is expected to close in Q3-2014.
ExxonMobil will receive:
- Approximately 25,000 net acres in the Permian Basin, located primarily in Midland, Martin, Upton and Glasscock counties;
- Approximately 1,000 acres in Lea County, New Mexico;
- Production of approximately 2 MBOE/d.
Linn will receive:
- More than 500,000 net acres and 2,300 operated wells (94% WI);
- Approximately 400 future drilling locations;
- Production of 85 MMcfe/d (20% liquids), with shallow base decline of approximately 6%;
- Total reserves of 700 Bcfe (20% liquids and 78% PDP).
View Linn May-2014 presentation
May 22, 2014 - Linn Cuts 2015 Capex 53%
Linn Energy announced a 53% YoY reduction in its planned 2015 capex budget to $730 million from approximately $1.55 billion in 2014. The company expects to produce 1.1 – 1.2 MMcfe/d (48% liquids). The company added that the reduction in capex is approximately half in response to lower commodity prices...
Linn Cuts 2015 Capex 53%Headlines, OthersLinn Energy announced a 53% YoY reduction in its planned 2015 capex budget to $730 million from approximately $1.55 billion in 2014. The company expects to produce 1.1 – 1.2 MMcfe/d (48% liquids). The company added that the reduction in capex is approximately half in response to lower commodity prices and half as a result of divestiture of Granite Wash assets and the majority of its Midland Basin assets, and reduced investment in other areas.
Mark E. Ellis, Chairman, President and CEO, said: “After careful consideration, Linn's senior management proposed and the Board of Directors approved a 2015 budget that contemplates a significantly lower current crude oil price than in 2014.”
View Linn Energy press release
January 2, 2015 - Linn to Raise $500 Million from Blackstone
Linn Energy signed a non-binding LoI with GSO Capital Partners LP, which is part of the Blackstone Group LP, to raise up to $500 million with 5-year availability to fund drilling programs.According to the agreement, GSO will fund 100% of the costs associated with new wells drilled and is expected to receive...
Linn to Raise $500 Million from BlackstoneOthersLinn Energy signed a non-binding LoI with GSO Capital Partners LP, which is part of the Blackstone Group LP, to raise up to $500 million with 5-year availability to fund drilling programs.
According to the agreement, GSO will fund 100% of the costs associated with new wells drilled and is expected to receive an 85% WI in these wells until it achieves a 15% internal rate of return on annual groupings of wells. Linn is expected to receive a 15% carried working interest during this period. Upon reaching the internal rate of return target, GSO's interest will be reduced to 5%, while LINN's will increase to 95%.
View Linn Energy press release
January 2, 2015
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