LINN Energy announces the acquisition of property in the East Texas Oil Field:
LINN Energy, LLC announced today that it signed a definitive purchase agreement to acquire oil and natural gas properties located in the East Texas Oil Field in Gregg and Rusk Counties for a contract price of $95 million, subject to closing conditions. The Company anticipates the acquisition will close on or before October 1, 2010, and will be financed with internally generated cash flow and proceeds from borrowings under its revolving credit facility. “This acquisition is a good fit for our existing portfolio of assets and provides an opportunity for the Company to enter a new operating area. The acquired properties have a reserve life of more than 25 years and an approximate five percent decline rate,” said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. “We also expect this new area to provide LINN with potential future consolidation opportunities.”
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