Jonah Energy, a Colorado-based oil and gas company, will soon own nearly 100 percent of natural gas reserves in western Wyoming — the eighth largest natural gas field in the country. The investment is a vote of confidence in an industry that’s seen declining prices in recent years.
After a brief negotiation, Jonah Energy will buy out LINN Energy's remaining assets for more than half a billion dollars. The sale includes more than a thousand wells and nearly 30,000 acres most of which is still undeveloped. LINN Energy went bankrupt in 2016 due to persistent low natural gas prices and just recently re-emerged from bankruptcy.
Paul Ulrich, the Director of Government Affairs at Jonah Energy, says the company isn’t worried about low prices. He adds they’re well-insulated to price fluctuation thanks to low operating costs.
Ulrich said, “We believe that will allow us now and in the future depending on price fluctuation to ride those ups and downs and still be a viable, productive company."
He added the deal is expected to close in a few weeks.