Linn Energy to Acquire Oil and Gas Assets From Lamamco Drilling
Posted on: Monday, 24 December 2007, 12:00 CST
Linn Energy has signed a definitive purchase agreement to acquire certain oil and gas properties located primarily in the mid-continent from Lamamco Drilling Company for a contract price of $552 million, subject to purchase price adjustments.
The company anticipates that the acquisition will close in early 2008 and will be financed with a combination of borrowings under its existing revolving credit facility and proceeds from a committed term loan facility to be entered into at closing.
Linn Energy expects that the acquisition will be immediately accretive to distributable cash flow per unit and does not anticipate issuing equity to finance this transaction.
Michael Linn, chairman and CEO of Linn Energy, said: "This transaction enhances value through significantly increased oil exposure, which we believe creates very attractive margins in the current commodity price environment. These assets are a natural fit for Linn Energy. This acquisition also provides an inventory of optimization and development projects which will create numerous future organic growth opportunities."
Source: Datamonitor
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