The assets are currently producing approximately 275 MMcfe/d, approximately 80% of which is natural gas, with a shallow base decline of approximately 14%. Total proved reserves are estimated to be between 1.3-1.5 Tcfe (approximately 75 percent PDP) with total resource potential of approximately 3 Tcfe.
The asset package is comprised of approximately 900,000 net acres across the Rockies, Mid-Continent, east Texas, north Louisiana and south Texas regions with approximately 4,500 total wells. LINN has identified over 1,000 future drilling locations and over 600 recompletion opportunities.
LINN's acquisition of Devon assets is intended to be financed ultimately through the sale of its Granite Wash assets and other non-producing acreage in LINN's portfolio. LINN has secured US$2.3 billion of committed interim financing for the acquisition of Devon assets, subject to final documentation. The financing was lead arranged by Scotiabank and included Barclays, RBC Capital Markets and Wells Fargo.
Mark E. Ellis, Chairman, President and Chief Executive Officer of LINN Energy, stated:
Early in 2014, we outlined four keys to success at LINN: realize value for the Midland Basin position; continue to make accretive acquisitions; reduce capital intensity while increasing efficiency; and improve credit metrics. We believe today's announcement is a positive development in achieving these objectives. As we enter into the second half of the year, we remain committed to these important goals.
The transaction is expected to close in the third quarter of 2014 with an effective date of April 1, 2014. Scotia Waterous acted as the exclusive financial advisor to LINN during this transaction.