LINN Energy has signed a definitive purchase agreement to acquire the oil and gas assets of Plains Exploration & Production for $600m.
According to the agreement, LINN will acquire oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma, US.
The assets have estimated proved reserves of 263 billion cubic feet equivalent of natural gas and a net production of 80 million cubic feet equivalent per day.
The transaction will enable LINN to increase the current production at Granite Wash by about 75% and will provide operational synergies.
LINN Energy president and CEO Mark Ellis said that the transaction will double the firm’s current inventory of horizontal drilling locations to more than 400 in the Granite Wash area.
