Linn to purchase BP's Jonah Field
Linn is to buy the Jonah Field from BP.
Business negotiations between BP America Production Company and Linn Energy could have concluded with the announcement that Linn is to purchase BP's properties in the Jonah Field.
The value of this transaction is $1.025 billion (£643 million) and the deal is forecast to close by July 31st.
Linn has signed a definitive purchase agreement relating to the acquisition, which will result in it owning assets estimated to potentially provide the equivalent of 145 million cubic feet of natural gas.
The Jonah Field is located in south-west Wyoming's Green River Basin and the deal is subject to a preferential right of purchase and a number of closing conditions.
President, chief executive officer and chairman of Linn Mark Ellis said: "The long-life, low-decline characteristics of the Jonah Field make this asset an excellent fit for us."
The firm noted its cashflow has a significantly higher level of protection of uncertainty in the prices of natural gas and oil than that of many of its peers.
Posted by Edel Quinn
Source: Linn Energy press reelase, June 25th