Linn Energy to Sell Verden Assets in Oklahoma to Laredo Petroleum for $185 Million; Retains the Option to Participate in Future Drilling
Houston, Texas, June 3, 2008
Linn Energy, LLC (Nasdaq: LINE) announced today that it has agreed to sell certain of its assets in the Verden area in Oklahoma to Laredo Petroleum, Inc. for cash consideration of $185 million, subject to closing adjustments. The assets include approximately 50,000net acres and proved reserves, as estimated by a third-party engineering firm, of approximately 45 billion cubic feet of natural gas equivalent and currently produce approximately 12 million cubic feet of natural gas equivalent per day. As part of the sale, Linn Energy will retain the option to participate in future qualifying Verden wells after a substantial portion of the drilling risk has been mitigated. The effective date of the transaction is July 1, 2008 and Linn Energy anticipates closing during the third quarter 2008.
"This transaction creates an opportunity to optimize Linn Energy's asset portfolio," said Michael C. Linn, Chairman and Chief Executive Officer. "The Verden properties represent one of the highest decline and highest risk assets in our portfolio. We plan to use the proceeds initially to repay debt under the credit facility and expect to redeploy the capital into projects that will allow us to develop long life, low risk and low decline properties which are better suited to our LLC structure."
ABOUT LINN ENERGY Linn Energy is an independent oil and gas company focused on the development and acquisition of long life properties which complement its asset profile in producing basins within the United States. More information about Linn Energy is available on the internet at www.linnenergy.com.
ABOUT LAREDO PETROLEUM, INC. Laredo Petroleum, Inc. is a privately held exploration and production company based in Tulsa, Oklahoma with Warburg Pincus as its equity investor.
Executive Vice President and CFO
Clay P. Jeansonne
Vice President - Investor Relations
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