Linn Energy, LLC announced that it has entered into a purchase and sale agreement to sell its deep rights in certain central Oklahoma acreage, which includes the Woodford Shale interval, for cash consideration of $229 million, subject to closing adjustments. The sale includes no producing reserves and Linn Energy will retain the rights to the shallow portion of this acreage. Linn Energy anticipates closing during the fourth quarter 2008. Pro forma for the transaction, the Company expects to have available capacity of over $600 million, including cash on its balance sheet.
“Consistent with our strategy of monetizing non-core positions, we have sold approximately $1 billion of oil and gas assets during the last six months, creating value for our unitholders,” said Michael C. Linn, Chairman and Chief Executive Officer. “We believe that these transactions have benefited the Company by repositioning our asset base. With this sale, we expect to considerably strengthen our balance sheet and improve our financial flexibility. We feel confident in our ability to weather the current credit environment and continue to pay our distributions.”
Linn Energy is an independent oil and gas company focused on the development and acquisition of long life properties that complement its asset profile in producing basins within the United States. More information about Linn Energy is available on the internet at http://www.linnenergy.com.