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Linn will pay $525M for Permian Basin assets

HOUSTON (AP) -- Linn Energy will spend $525 million to acquire land in the oil-and-gas rich Permian Basin.

Linn said Thursday that the assets will have net production of about 4,800 barrels of oil equivalent per day in the first year after the acquisition. The company will take out a $500 million term loan to help fund the purchase, and it expects to complete the acquisition during the fourth quarter.

The Permian Basin is mostly located in Texas and New Mexico.

Shares of Linn Energy LLC rose 24 cents to $28.14 in early trading.