LINN Energy: GSO Capital Partners To Fund Oil And Natural Gas Development

(RTTNews) - LINN Energy, LLC (LINE) and LinnCo, LLC (LNCO) announced that LINN has signed a formal agreement with private capital investor GSO Capital Partners L.P., the credit platform of The Blackstone Group L.P. (BX), to fund oil and natural gas development. Funds managed by GSO and its affiliates have agreed to commit up to $500 million with 5-year availability to fund drilling programs on locations provided by LINN.

GSO will fund 100 percent of the costs associated with new wells drilled under the agreement and is expected to receive an 85 percent working interest in these wells until it achieves a 15 percent internal rate of return on annual groupings of wells.