Linn Energy Acquires Jonah Field
Linn Energy, LLC (NASDAQ: LINE) recently announced the acquisition of Wyoming’s Jonah Field from BP PLC (NYSE: BP) for $1.025 billion. The acquisition will add approximately 145 million cubic feet equivalent per day of liquids-rich natural gas production. The deal will also add immediately to Linn’s distributable cash flow per unit. Plus, it offers significant drilling inventory. According to Linn Energy CEO Mark Ellis, “The long-life, low-decline characteristics of the Jonah Field make this asset an excellent fit for us.” Some of the significant characteristics expected from this acquisition are proved reserves, maintenance capital, and potential for production optimization and cost savings. The deal is expected to close by July 31.