Скачать или смотреть Mergers & Acquisitions: Linn Energy Acquires Permian Basin Fields For $352 Million

Linn Energy LLC (NASDAQ:LINE) announced Tuesday that it will pay $352 million to acquire fields in the Permian Basin in southwest Texas.

The region includes areas south of Lubbock, Midland and Odessa. Houston-based Linn Energy said the acquisitions will close before the end of November.

According to the press release, the Stein 1-3H well tested at a 24-hour production rate of 37.2 Millions of Cubic Feet Equivalent per day, including estimated NGL recoveries and shrinkage associated with processing the natural gas.

The production is comprised of 19 Millions of Cubic Feet Equivalent per day of natural gas and 1,487 barrels of condensate per day at 1,510 pounds per square inch flowing surface pressure.

Mark E. Ellis, President and Chief Executive Officer of LINN Energy, said "We are extremely pleased with the results from our operated Granite Wash program, which has continued to exceed our expectations. The Black 50-1H well has been on production for 56 days and is currently producing at a rate of more than 40 millions of cubic feet equivalent per day. The McMahan 22-2H well has been on production for 110 days and is currently producing at an approximate rate of 8 millions of cubic feet equivalent per day. The average liquids component of the production stream on our four operated wells is more than 60 percent, of which a significant portion is condensate. As a result, all of these wells will generate rates of return that should exceed 100 percent."

SmarTrend is bullish on shares of Linn Energy and our subscribers were alerted to buy on May 10, 2010 at $24.95. The stock has risen 19.4% since the alert was issued.