Linn Energy LLC (NASDAQ: LINE) and LinnCo LLC (NASDAQ: LNCO) announced May 21 that Linn doubled its Kansas assets through a trade of land miles away with ExxonMobil Corp. (NYSE: XOM).

Linn signed a definitive agreement to trade a portion of its Permian Basin properties to ExxonMobil and its wholly owned subsidiary XTO Energy Inc. for operating interests in the Hugoton Field.

Linn will receive a portion of ExxonMobil's interest in its Hugoton Field, which is currently producing about 85 million cubic feet equivalent per day (MMcfe/d), of which 80% is natural gas and 20% is NGL, with a shallow base decline of some 6%. Total reserves are estimated to be 700 Bcfe, of which 80% is natural gas and is 78% proved developed producing (PDP). The field is comprised of more than 500,000 net acres and has some 2,300 operated wells. Linn has identified more than 400 future drilling locations, doubling the company's inventory in the Hugoton Field.

In exchange, ExxonMobil will receive about 25,000 net acres in the Midland Basin, which are located primarily in Midland, Martin, Upton and Glasscock counties, Texas. ExxonMobil will obtain an estimated 2 thousand barrels of oil equivalent per day (Mboe/d) of current production, and Linn will retain about 3 Mboe/d of production from the aforementioned acreage. Additionally, ExxonMobil will receive some 1,000 acres in Lea County, N.M.

"Following the closing of this transaction with ExxonMobil, Linn will have remaining production of approximately 15 MBoe/d and approximately 30,000 net acres in the Midland Basin that is prospective for horizontal Wolfcamp drilling," Mark E. Ellis, Linn chairman, president and CEO, said in a May 21 press release. "We continue to see strong interest in the market for a trade or sale of these remaining assets and believe there is significant additional value for our unitholders."

The transaction is expected to close in the third-quarter of 2014 with an effective date of June 1.