Topic: Oil and Gas News - Linn Energy to Buy Oil, Gas Assets From Dominion (Update1) - Bloomberg

July 2 (Bloomberg) — Linn Energy LLC, an oil and natural gas producer, agreed to buy Dominion Resources Inc. Linn is acquiring proved reserves of 760 billion cubic feet of natural gas and oil equivalent and more than 2,500 producing wells, the Houston based company said in a statement. Linn said the assets in Oklahoma, Texas and Kansas, have potential reserves of 1 trillion cubic feet of gas and a 15-year reserve life. Linn Energy, which trades at about $3 per thousand cubic feet of natural gas, is paying about $2. Linn said it has hedged the transaction to protect it against a sudden drop in natural gas prices. The acquisition is a long term bet that natural gas prices will climb over time amid growing demand, Smith said. read more

[Tags]gas, linn, acquisition, natural, oil, 1, oil and gas news[/Tags]

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