Jonah Energy announced that it has signed a definitive agreement to acquire natural gas and oil producing properties in the Jonah and Pinedale fields and surrounding area from LINN Energy, for $580 million.
As per terms of the agreement, Jonah Energy will acquire LINN’s interests in over 1,200 producing wells and 27,000 net acres, of which more than 80% is currently undeveloped. More than half of the acquired wells are operated by Jonah Energy. The transaction will be financed with a combination of equity from the company’s existing investor group and borrowings under its credit facility, which will be expanded in connection with the transaction. Jonah Energy expects to begin development activity on the acquired assets during the second half of 2017, with three rigs planned by early 2018.
Partner at TPG Capital, Christopher Ortega said that since founding Jonah Energy together in 2014, They have partnered with Tom and his team to optimize operations and drive meaningful value creation through enhanced operational performance, increased drilling efficiency, and cost improvements. Jonah Energy has grown into a low-cost, high margin business led by a highly experienced and operationally-proven management team. This transaction gives Jonah Energy running room for decades of growth and we are eager to approach this next era with the same dedication and focus that we took to growing the company.