LINN Energy, Inc. announces that it has signed a definitive agreement to sell its interest in conventional properties located in west Texas to an undisclosed buyer for a contract price of $119.5 million, subject to closing adjustments.
The properties to be sold consist of approximately 28 000 net acres in west Texas with 2017 net production of approximately 6300 boe/d, proved developed reserves of ~14.4 million boe and proved developed PV-10 of approximately US$106 million. Annualised field level cash flow on these properties is approximately US$32 million. Estimated annual general and administrative expense for these properties is approximately US$3 million, which is not included in the field level cash flow estimates provided.
The sale is expected to close in the first quarter of 2018 with an effective date of 1 January 2018. This transaction is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of closing conditions. RBC Richardson Barr and Jefferies LLC acted as co-financial advisors and Kirkland & Ellis LLP as legal counsel during the transaction.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/16022018/linn-energy-announces-sale-of-conventional-west-texas-properties-for-us1195-million/