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8-K - FORM 8-K - ROAN RESOURCES, INC. | h82156e8vk.htm |
EX-99.2 - EX-99.2 - ROAN RESOURCES, INC. | h82156exv99w2.htm |
Exhibit 99.1
NEWS RELEASE |
LINN ENERGY TO ACQUIRE PROPERTIES IN
THE TEXAS PANHANDLE AND OKLAHOMA FOR $220 MILLION
THE TEXAS PANHANDLE AND OKLAHOMA FOR $220 MILLION
HOUSTON, May 9, 2011 LINN Energy, LLC (NASDAQ: LINE) announced today that it signed a definitive
purchase agreement with Panther Energy Company, LLC and Red Willow Mid-Continent, LLC to acquire 40
percent of their oil and natural gas properties located in Ochiltree and Lipscomb Counties, Texas
and Ellis County, Oklahoma for a contract price of $220 million, subject to closing conditions. The
Company anticipates the acquisition will close on or before June 1, 2011, and will be financed with
net proceeds from the recently announced senior notes offering.
The acquisition of these properties enhances LINNs overall position in the Texas Panhandle area,
and marks our entry into the liquids-rich window of the horizontal Cleveland play in the Anadarko
Basin, said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. Partnering with
Panther will align us with an experienced and efficient operator that has been active and
successful in this area for several years. This acquisition provides high rate-of-return projects
and we expect it to be immediately accretive to our unitholders.
Bob Zahradnik, Chairman of Panther Energy, added, We have created significant value in the
Anadarko Basin, and we look forward to developing this area with a solid partner like LINN Energy.
This divestiture is a tactical transaction to fund the substantial capital demands of our
successful programs in the deepwater Gulf of Mexico and West Texas.
Significant characteristics of the assets are:
§ | Net production of approximately 2,700 barrels of oil equivalent per day from approximately 170 producing wells; | ||
§ | Proved reserves of approximately 10 million barrels of oil equivalent (45 percent oil, 37 percent proved developed); | ||
§ | Total acreage position of 140,000 gross (44,000 net) acres; and | ||
§ | More than 165 proved low-risk infill drilling locations. |
Revised guidance has been posted to the Presentations section of LINN Energys website at
www.linnenergy.com.
ABOUT LINN ENERGY
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of
long-life oil and natural gas assets. LINN Energy is a top-20 U.S. independent oil and natural gas
development company, with approximately 2.8 Tcfe of proved reserves in producing U.S. basins as of
Dec. 31, 2010 (pro forma for pending and closed 2011 acquisitions). More information about LINN
Energy is available at www.linnenergy.com.
ABOUT PANTHER ENERGY AND RED WILLOW
The Southern Ute Growth Fund is the majority owner and funding partner of Panther Energy, LLC and
the parent company of Red Willow. Panther and Red Willow have E&P and midstream operations
throughout the Rockies, Mid-Continent, Permian Basin, West Texas and the Gulf of Mexico. The Growth
Fund oversees the business of the Southern Ute Indian Tribe.
Scotia Waterous (USA) acted as financial advisor to Panther Energy Company, LLC and Red Willow
Mid-Continent, LLC in this transaction.
This press release includes forward-looking statements. All statements, other than statements of
historical facts, included in this press release that address activities, events or developments
that the Company expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements include, but are not limited to forward-looking
statements about acquisitions and the expectations of plans, strategies, objectives and anticipated
financial and operating results of the Company,
including the Companys drilling program, production, hedging activities, capital expenditure
levels and other guidance included in this press release. These statements are based on certain
assumptions made by the Company based on managements experience and perception of historical
trends, current conditions, anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause actual results to differ materially
from those implied or expressed by the forward-looking statements. These include risks relating to
the Companys financial performance and results, availability of sufficient cash flow to pay
distributions and execute its business plan, prices and demand for oil, natural gas and natural gas
liquids, the ability to replace reserves and efficiently develop current reserves and other
important factors that could cause actual results to differ materially from those projected as
described in the Companys reports filed with the Securities and Exchange Commission. See Risk
Factors in the Companys Annual Report filed on Form 10-K and other public filings and press
releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the
Company undertakes no obligation to correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Contacts: | LINN ENERGY, LLC Investors: Clay Jeansonne, Vice President Investor Relations 281-840-4193 Media: Paula Beasley, Manager, Public Affairs & Communications 281-840-4183 PANTHER ENERGY, LLC Bob Zahradnik, Chairman 970-563-5003 Berry J. Mullennix, President and Chief Executive Officer 918-551-7108 |