Randy Foutch's Tulsa, Okla.-based Laredo Petroleum Inc., a privately held portfolio company of Warburg Pincus, plans to acquire assets in the Verden area in Oklahoma from the MLP Linn Energy LLC, Houston, (NasdaqGS: LINE) for $185 million in cash.

The assets include approximately 50,000 net acres. Proved reserves as estimated by a third-party engineering firm are approximately 45 billion cubic feet equivalent. Current production is 12 million cubic feet equivalent per day. Linn will retain the option to participate in future qualifying Verden wells.

Linn chairman and chief executive Michael C. Linn says, "This transaction creates an opportunity to optimize Linn Energy's asset portfolio. The Verden properties represent one of the highest-decline and highest-risk assets in our portfolio."

The proceeds will be used to pay debt and fund long-life, low-risk and low-decline projects "which are better suited to our LLC structure," he adds.

The effective date is July 1. Closing is expected during the third quarter.