Linn to buy assets from BP for $1.03 billion

(Reuters) - Linn Energy LLC (LINE.O) said it would buy natural gas acreage in southwest Wyoming from BP America Production Co (BP.L) for $1.03 billion, its second such deal with the British company this year.

The properties in the Jonah Field, located in the Green River Basin, have proved reserves of about 730 billion cubic feet equivalent, of which 73 percent is natural gas and 23 percent natural-gas liquids.

The acquisition is expected to immediately add to distributable cash flow per unit, the company said.

Separately, Linn Energy affiliate Linn Co LLC filed with U.S. regulators to raise up to $1 billion in an initial public offering of common stock.

Linn said it expected to finance the BP deal, which will close by July 31, with debt.

The company bought natural gas assets in Kansas from BP in a $1.2 billion deal earlier this year.

BP, Europe's second-largest oil company by market value, is working to raise up to $38 billion from disposals by the end of 2013.

Linn CEO Mark Ellis told Reuters earlier this year the company would spend up to $2 billion on acquisitions every year.

Linn has spent nearly $3 billion, including Monday's deal, on acquisitions so far this year.

Shares of the company, which has a market value of $7.20 billion, fell 1.4 percent to $35.50 on the Nasdaq.

(Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)