LINN Energy secures $1 billion worth of funding for acquisitions

HOUSTON -- LINN Energy has signed definitive agreements with private capital investor Quantum Energy Partners to fund selected future oil and natural gas acquisitions and the development of acquired assets (QL Energy I, LLC or AcqCo).

Quantum has agreed to initially commit up to $1 billion of equity capital to fund acquisitions and development of oil and natural gas assets.

LINN will have the ability to participate in all acquisition opportunities with a direct working interest ranging from 15% to 50%. AcqCo assets will be managed by LINN in exchange for reimbursement of general and administrative expenses.

Additionally, after certain investor return hurdles are met, LINN will have the ability to earn a promoted interest in AcqCo. Upon the sale of any assets within AcqCo, LINN will be given right of first offer to acquire the assets.

Mark E. Ellis, chairman, president and CEO of LINN Energy, said, "We are very excited to have finalized this new opportunity and are pleased to be working with Quantum in this unique partnership. We anticipate a number of attractive assets may come to market in the current environment, and we expect these agreements will position the company to take advantage of such opportunities."