LINN Energy Unloads Some Oklahoma and Texas Properties

The Oklahoma Waterflood and Texas Panhandle properties of LINN Energy Inc. have been sold in a $122 million agreement with ah undisclosed buyer.

The sale, still subject to closing agreements involves 179,000 net acres in Oklahoma and Texas with third quarter net production of nearly 5,200 BOE/d. It also involves proved developed reserves of  22.8 MMBOE. The annualized field level cash flow on the properties is nearly $21 million, according to the announcement by LINN Energy.

LINN, based in Houston,  indicated the sale of the mature assets substantially reduces the company’s future abandonment liabilities and operating expenses. The estimated annual general and administrative expenses for the combined properties is between $4 million and $6 million.

The sale won’t close until the first quarter of 2018 with an effective date of Oct. 1, 2017.

Jefferies LLC acted as the financial advisor for the Texas Panhandle properties and Kirkland and Ellis LLP was the legal counsel for both transactions.

The sale is expected to close in the first quarter of 2018 with an effective date of October 1, 2017. This transaction is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of closing conditions. Jefferies LLC acted as financial advisor for the Texas Panhandle properties and Kirkland & Ellis LLP acted as legal counsel for both transactions.

LINN Energy Incl was formed in February of this year and is the reorganized successor to LINN Energy LLC following its bankruptcy last year. The company’s current focus is in Oklahoma’s STACK and SCOOP oil plays through its equity interest in Roan Resources LLC as well as through its midstream operations in the area.

But LINN is also pursuing emerging horizontal opportunities in Oklahoma, North Louisiana and East Texas.

The latest announcement of the sale of the Oklahoma and Texas properties followed an announcement earlier this year that LINN had divided itself into three standalone companies, as OK Energy Today reported.