BP sells Wyoming assets worth $1 Billion to Linn Energy image

British energy company BP Plc said Monday it has agreed to sell its interests in the Jonah and Pinedale upstream operations in Wyoming to Linn Energy for $1.025bn in cash.

The Jonah Field acquisition, which will be financed under an existing revolving credit facility, includes about 753 billion cubic feet equivalent of proven natural gas reserves.

The deal, which is expected to complete by the end of next month, will see the British heavyweight offload its operations centre in Sublette County, along with its working interest in around 260 wells, with recent net production totalling 146 million standard cubic feet equivalent of gas a day.
The company’s chief executive, Bob Dudley, said the proceeds would be invested in North American gas businesses and other opportunities.

BP says the sale brings the total value of divestments since 2010 to about $24 billion. The company has set a target of $38 billion in asset sales to help pay for the costs of the Gulf of Mexico well blowout and oil spill.

LINN’s chairman and CEO, Mark Ellis, said the acquisition gives his company a significant position in the Green River Basin.

Earlier this year, Linn bought BP properties in the Hugoton Basin in Kansas for $1.2 billion. So far this year, Linn has made acquisitions worth about $3 billion.

The company bought BP properties in Kansas for $1.2 billion in March. Linn has announced the most U.S. exploration and production purchases in 2012, with four transactions valued at $2.4 billion, including the agreement today.