Linn Energy Inc. has agreed to sell its nonoperated Williston basin interest to an undisclosed buyer for $285 million. The deal moves the Houston firm a step closer to completing its noncore divestment program that has netted about $1.6 billion thus far since its emergence from bankruptcy in February.
The properties consist of 20,000 net acres in North Dakota, South Dakota, and Montana with second-quarter net production of 8,000 boe/d, proved developed reserves of 20 million boe, and proved developed PV-10 of $186 million.
Linn had budgeted $7 million in fourth-quarter capital for the properties. The deal, effective Mar. 1, is expected to close in the fourth quarter.
Earlier this month, Linn reported an agreement to sell its interest in 163,000 net acres in Washakie field of Wyoming to an undisclosed buyer for $200 million (OGJ Online, Oct. 4, 2017).
Also in Wyoming, the firm has sold its interests in Jonah and Pinedale fields as well as its interest in Salt Creek field in two separate deals. It also has exited California and South Texas and sold some of its Permian interest.
Linn continues to market its remaining assets in the Permian along with its interest in Altamont Bluebell field in Utah and its mature waterfloods in Oklahoma.
Linn’s new focus is on the Anadarko basin’s Merge-SCOOP-STACK play through its 50%-owned Roan Resources LLC, formed this summer alongside Citizen Energy II LLC (OGJ Online, June 28, 2017).
Linn says it’s also “pursuing emerging horizontal opportunities in the Midcontinent, Rockies, North Louisiana, and East Texas.”
Contact Matt Zborowski at [email protected].
