LINN Energy, LLC and LinnCo, LLC announced that LINN has signed a definitive agreement to trade a portion of its Permian Basin properties to Exxon Mobil Corporation and its wholly owned subsidiary XTO Energy Inc. (collectively, "ExxonMobil") for operating interests in the Hugoton Basin. The transaction is expected to close in the third quarter of 2014 with an effective date of June 1, 2014.
LINN will receive a portion of ExxonMobil's interest in its Hugoton Field, which is currently producing approximately 85 MMcfe/d (80 percent natural gas and 20 percent NGL) with a shallow base decline of approximately six percent. Total reserves are estimated to be approximately 700 Bcfe (80 percent natural gas and 78 percent PDP). The field is comprised of more than 500,000 net acres and has approximately 2,300 operated wells. LINN has identified more than 400 future drilling locations, doubling the Company's inventory in the Hugoton Field.