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Image courtesy of Linn Energy

Houston-based Linn Energy is paying $525 million for land and producing wells in the Permian Basin.

The acquisition includes 6,250 acres with 124 in place oil and natural gas wells, with first-year output potential of 4,800 barrels of oil equivalent per day.

More than 60% of the production is crude oil.

Linn believes there are about 300 future low-risk drilling locations on the acreage.

The company was established in 2003, growing from a few natural gas wells to a top-15 independent U.S. E&P company.

Core focus areas are the Mid-Continent, Permian Basin, Hugoton Basin, Rockies, Michigan and California.

Linnn produced 84 million cubic feet of gas equivalent per day in the second quarter of 2013 from the Permian Basin.

Earlier this year, it agreed to pay $2.4 billion to acquire Denver-based Berry Petroleum Co. That deal hasn’t closed yet but received a positive response from regulators this week.

The Permian Basis buy is expected to close in the fourth quarter this year.

Linn estimates that the Permian Basin properties contain about 30 million barrels of oil equivalent, with another 24 million recoverable through water flood techniques.