LINN Energy has signed a definitive agreement to divest its stake in assets in West Texas to an undisclosed buyer for $119.5m.

The assets being divested comprise around 28,000 net acres in West Texas with 2017 net production totalling 6,300 barrels of oil equivalent a day (boed), proved developed reserves of 14.4 million barrels of oil equivalent (mmboe) and proved developed PV-10 of around $106m.

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The annualised field level cash flow on these assets stands at around $32m.

Annual general and administrative expense estimated for these assets is around $3m, which is not part of the field level cash flow estimates.

The divestment is expected to close in the first quarter of 2018 and carries an effective date of 1 January.

This deal is subject to completion of title and environmental due diligence, as well as other closing conditions.

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RBC Richardson Barr and Jefferies served as co-financial advisors, while Kirkland & Ellis acted as legal counsel for the transaction.

“This deal is subject to completion of title and environmental due diligence, as well as other closing conditions.”

Last month, LINN Energy signed a definitive agreement to sell its interest in properties in the Altamont Bluebell Field to an undisclosed buyer for $132m.

The properties consist of around 36,000 net acres in Utah with third quarter net production of approximately 1,450boed, proved developed reserves of 5.8mmboe and proved developed PV-10 of approximately $75m.

The divestment is expected to close in the first quarter of 2018 and carries an effective date of 1 August.

These divestments are part of the previously bankrupted company’s strategy to focus on its oil and gas assets in Oklahoma.

LINN turned out to be a casualty after a drop in oil prices. In 2017, a smaller LINN was set up. The company is currently divesting properties that do not fit into its strategy of splitting the firm into three units.

It’s focus currently is on Permian Basin assets in Texas and New Mexico, as well as the Drunkards Wash coalbed methane asset in Utah.