Having struggled through expenditure cuts and debt this year, Linn Energy plans to sell off its remaining assets in the Permian Basin. FuelFix reports the Houston-based company’s assets in Howard County were purchased for $281 million by an unnamed buyer.
The assets purchased include about 6,400 acres of Midland for potential Wolfcamp drilling and production from 133 nearby wells.
The sale is one step in the company’s continued divestment as oil prices flounder; over the past year, Linn’s stock prices dropped from $32 per share last July to $9 per share Monday. The company did, however, finalize an equity deal that would allow up to $1.5 billion in potential value, which may aid its growth.
Fellow Houston company Quantum Energy Partners contributed up to $1 billion in equity funds for oil and gas acquisitions and development; Linn could invest in acquisitions with 15-50 percent direct interest. GSO Capital Partners will commit up to $500 million over the span of five years to help along Linn’s drilling projects.