Linn Energy secures $1.5bn funding, sells remaining Permian oil assets for $281m

US based Linn Energy has finalised deal with Quantum Energy Partners and GSO Capital Partners to provide $1.5bn to fund acquisitions and development of acquired oil and gas assets.

Separately, the company has also signed a deal with an unnamed buyer to sell the remaining portion of its Permian Basin assets in Texas for $281m.

The deals are in line with the exploration and production firm’s initiatives to revive its finances which had been affected by the declining oil prices.

Quantum has committed up to $1bn of equity capital initially to support Linn Energy’s future acquisitions and development of oil and natural gas assets.

According to the agreement signed between Quantum and Linn, the latter will be able to invest in all acquisition opportunities with a direct working interest ranging from 15% to 50%.

As per the deal signed with GSO, a unit under Blackstone Group, the company has committed to provide $500m to Linn for five years to fund its drilling programmes.

The divested assets in Texas include 6,400 net acres to the northeast of Midland for prospective horizontal drilling in the Wolfcamp area.

It also entails around 2.0 MBoe/d of current production from 133 wells in the area.

---

Image: Linn Energy sells remaining oil assets in Permian Basin. Photo: courtesy of LinnCo.