HOUSTON, Feb. 14, 2018 (GLOBE NEWSWIRE) -- LINN Energy, Inc. (OTCQB:LNGG) 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 6,300 BOE/d, proved developed reserves of ~14.4 MMBOE(1)and proved developed PV-10 of approximately $106 million(1). Annualized field level cash flow on these properties is approximately $32 million(2). Estimated annual general and administrative expense for these properties is approximately $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 January 1, 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.
ABOUT LINN ENERGY
LINN Energy, Inc. was formed in February 2017 as the reorganized successor to LINN Energy, LLC. Headquartered in Houston, Texas, the Company’s current focus is the development of the Merge/SCOOP/STACK in Oklahoma through its equity interest in Roan Resources LLC, as well as through its midstream operations in that area. Additionally, the Company is pursuing emerging horizontal opportunities in Oklahoma, North Louisiana and East Texas, while continuing to add value by efficiently operating and applying new technology to a diverse set of long-life producing assets.
