Pittsburgh-based independent Linn Energy LLC said it paid Blacksand Energy LLC $291 million for about 31.3 million boe of proved oil reserves located in the Los Angeles Basin and paid Kaiser-Francis Oil Co. $125 million for 55 Bcfe of proved Midcontinent gas reserves. The Blacksand assets located in the Brea Olinda Field in Orange County, CA, include 270 producing wells and are 90% crude oil. The Kaiser assets, located in North Central Oklahoma, include 411 producing wells and are 84% natural gas. The purchases will substantially diversify the company’s assets, which currently are located primarily in the Appalachian Basin and are 99% natural gas. Linn said it expects to increase it annual cash distribution to $1.72/unit beginning in the third fiscal quarter and plans to recommend another distribution increase in the fourth quarter.

Louis Dreyfus Pipeline LP. said Tuesday that it has started construction of a 33-mile extension of its natural gas liquids (NGL) pipeline into the Barnett Shale producing region in Texas and has initiated the permitting process to build a second NGL pipeline from its current Hull, TX destination to the Mont Belvieu natural gas liquids hub. When completed in the fourth quarter of 2006, the eight-inch Barnett Shale lateral pipeline will connect to multiple gas processing facilities in and around Johnson County, Louis Dreyfus said. It will have a daily NGL capacity in excess of 45,000 barrels and deliver the NGL into the existing Louis Dreyfus Pipeline system near Walnut Springs, TX. The Hull to Mont Belvieu extension should start construction in November, according to the company. When completed, the 31-mile pipeline will provide direct access to the Mont Belvieu NGL hub. Louis Dreyfus said the 12-inch pipeline is anticipated to be operational by the first quarter 2007 and will have a capacity of more than 120,000 b/d. Joe Rothbauer, vice president of midstream operations for Louis Dreyfus, said the pipelines will provide incremental NGL take-away capacity that is important for continued Barnett Shale development.

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