UPDATE 1-Linn Energy to buy natural gas assets for $175 mln

March 9 Fri Mar 9, 2012 9:04am EST

March 9 (Reuters) - U.S. oil and gas company Linn Energy LLC said it would buy natural gas assets worth $175 million in East Texas.

The property produces about 24 million cubic feet equivalent per day, 97 percent of which is in the form of natural gas.

The assets, which have 430 wells spread over 19,800 contiguous net acres, contain proved reserves of about 136 billion cubic feet equivalent, Linn said.

The company will use its revolving credit facility to pay for the deal, which is expected to close before May 1 and immediately add to its cash flow.

The Houston-based company, which has forecast a 40 percent jump in its 2012 production, recently bought natural gas assets in Kansas from BP Plc. for $1.2 billion.

Linn shares closed at $38.43 on Thursday on the Nasdaq.