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President, Chairman and Chief Executive Officer of LINN Mark E. Ellis. Image courtesey of LinnCO.

Houston-based LINN Energy and its wholly-owned subsidiary LinnCo bought 235,000 net acres in the Hugoton Basin from Texas-based Pioneer Natural Resources for $340 million.

The assets are currently producing approximately 40 million cubic feet per day (MMcfe/d), about 60 percent being natural gas, LINN said Tuesday.

LINN is an independent exploration and production company.

LINN currently holds more than 760,000 net acres of oil and natural gas properties in the basin, extending from the central portion of the Texas Panhandle into southwestern Kansas.

Total proved reserves are estimated to be about 340 billion cubic feet equivalent with 95 percent of that being proved developed reserves.

The reserve has an expected life of 23 years.

LINN’s new asset has 1,200 producing wells and the company identified 180 future drilling locations and 150 recompletion opportunities.

The deal will bring LINN’s pro forma production in the Houghton Basin to about 275 MMcfe/d.

The company will also have two natural gas processing plants with a total capacity of 690 MMcfe/d in the area.

LINN also sold approximately 26,000 undeveloped acres in the Woodford and Meramec horizons of the Anadarko Basin to an undisclosed party for $90 million.

The Pioneer deal will be financed with the sale of the Anadarko plays and other producing and non-producing assets.

“This acquisition further strengthens LINN’s significant position in the Hugoton Basin and reinforces our commitment to the previously announced strategic portfolio improvement plan,” President, Chairman and Chief Executive Officer Mark E. Ellis said.