Attached files
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8-K - FORM 8-K - ROAN RESOURCES, INC. | h75961e8vk.htm |
EX-3.1 - EX-3.1 - ROAN RESOURCES, INC. | h75961exv3w1.htm |
Exhibit 99.1
NEWS RELEASE |
LINN ENERGY TO ACQUIRE PROPERTIES IN THE WOLFBERRY TREND
OF THE PERMIAN BASIN FOR $352 MILLION
OF THE PERMIAN BASIN FOR $352 MILLION
Houston, September 7, 2010 LINN Energy, LLC (NASDAQ: LINE) announced today that it signed three
definitive purchase agreements to acquire oil and natural gas properties located in the Wolfberry
trend of the Permian Basin for a combined price of $352.2 million, subject to closing conditions.
The Company anticipates the acquisitions will close before the end of November 2010, and will be
financed with proceeds from borrowings under its revolving credit facility.
These acquisitions are an excellent addition to our existing Permian assets in the Wolfberry trend
and a significant addition to our inventory of high-return oil projects, said Mark E. Ellis,
President and Chief Executive Officer of LINN Energy. Pro forma for these transactions, LINNs
Permian Basin production is approximately 10,000 barrels of oil equivalent per day. Proved reserves
are more than 74 million barrels of oil equivalent, with a high liquids content of approximately 76
percent, and are 41 percent proved developed. Since our first Permian acquisition in August 2009,
we have built this region into the Companys second largest operating area. An important component
of our organic growth will be derived from approximately 400 proved oil-focused Wolfberry drilling
opportunities, which we expect will provide LINN with a five-year drilling inventory. Additionally,
we expect these acquisitions to be immediately accretive to cash flow per unit upon closing.
Significant characteristics of the three acquisitions are:
§ | Net production of approximately 3,300 barrels of oil equivalent per day (73 percent oil); | ||
§ | Proved reserves of approximately 30 million barrels of oil equivalent (72 percent oil); | ||
§ | More than 230 Wolfberry drilling locations representing proved undeveloped reserves of 23 million barrels of oil equivalent; and | ||
§ | Reserve life of approximately 25 years. |
ABOUT LINN ENERGY
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of
long-life oil and natural gas assets. LINN Energy is an independent oil and natural gas development
company, with approximately 2.4 Tcfe of proved reserves in producing U.S. basins as of year-end
2009 (pro forma for recently announced and closed acquisitions in 2010). More information about
LINN Energy is available at www.linnenergy.com.
CONTACTS: | LINN ENERGY, LLC |
Investors: Clay Jeansonne, Vice President Investor Relations 281-840-4193 |
Media: Paula Beasley, Manager, Public Affairs & Communications 281-840-4183 |
This press release includes forward-looking statements. All statements, other than statements of
historical facts, included in this press release that address activities, events or developments
that the Company expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements include but are not limited to forward-looking
statements about acquisitions and the expectations of plans, strategies, objectives and anticipated
financial and operating results of the Company, including the Companys drilling program,
production, hedging activities, capital expenditure
levels and other guidance included in this press release. These statements are based on certain
assumptions made by the Company based on managements experience and perception of historical
trends, current conditions, anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause actual results to differ materially
from those implied or expressed by the forward-looking statements. These include risks relating to
the Companys financial performance and results, availability of sufficient cash flow to pay
distributions and execute its business plan, prices and demand for oil, natural gas and natural gas
liquids, the ability to replace reserves and efficiently develop current reserves and other
important factors that could cause actual results to differ materially from those projected as
described in the Companys reports filed with the Securities and Exchange Commission. See Risk
Factors in the Companys Annual Report filed on Form 10-K and other public filings and press
releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the
Company undertakes no obligation to correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Estimates of proved reserves of pending acquisitions included in this press release were calculated
as of the effective dates of the acquisitions using forward strip oil and natural gas prices. These
estimates of proved reserves differ from those prepared in accordance with the rules and
regulations of the Securities and Exchange Commission.