LINN Energy, Inc. (ticker: LNGG) has signed a definitive agreement to sell its interest in properties located in the Altamont Bluebell Field to an undisclosed buyer for a contract price of $132 million.
(Note: This map is for illustrative purposes only and does not represent the specific assets sold.)
The properties to be sold consist of approximately 36,000 net acres in Utah with Q3 net production of approximately 1,450 BOEPD, proved developed reserves of ~5.8 MMBOE(1) and proved developed PV-10 of approximately $75 million. Annualized field level cash flow on these properties is approximately $8.4 million.
According to these numbers, each acre sold for approximately $3,666. Using the third quarter net production number provided, $91,034 per flowing BOEPD was the approximate sale price. As for the proved developed reserves, the company sold the play for $22.75 per BOE of reserves.
The sale is expected to close in the first quarter of 2018 with an effective date of Aug. 1, 2017.
CIBC Griffis & Small and Jefferies LLC acted as co-financial advisors and Kirkland & Ellis LLP as legal counsel during the transaction.
