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Breitburn Energy Partners LP Message Board

  • rlp2451 rlp2451 Apr 25, 2012 8:55 AM Flag

    BBEP Acquires Distressed Properties in Wyoming

    BreitBurn Energy Partners L.P. (the "Partnership") (BBEP - News) today announced it has signed a definitive agreement to acquire oil properties located in Park County in the Big Horn Basin of Wyoming for approximately $98 million from Legacy Energy, Inc., a wholly-owned subsidiary of NiMin Energy Corp. (“NiMin”). The properties produced approximately 600 Boe/day (100% oil) in March 2012. The acquisition is subject to customary closing conditions and purchase price adjustments, as well as approval by NiMin shareholders. The transaction is expected to close within 90 days.

    Randy Breitenbach, BreitBurn's President said, “We are pleased to announce another excellent bolt-on oil acquisition in the Big Horn Basin of Wyoming, an area where we have significant oil producing assets and extensive experience with our legacy properties. These fields adjoin our existing Big Horn operations, produce 100% oil, have long-lived reserves and significant original oil in place. This acquisition will allow us to continue to exploit our regional operating expertise. We have also identified numerous infill drilling locations that we expect to begin drilling later this year which should drive meaningful production growth from these assets. This is a truly bolt-on acquisition which moves forward our 2012 operating plan and growth-through-acquisition strategy.”

    Highlights of this acquisition include:

    -- Immediately accretive to distributable cash flow

    -- Estimated proved reserves (based on recent strip prices) of approximately 5.9 MMBoe, plus additional unproved potential

    -- Estimated reserve life index of over 20 years on estimated proved reserves

    -- Approximately 45 existing well locations and substantial upside potential with infill drilling opportunities

    -- Properties are 100% operated with an average working interest greater than 90%

    -- Net acreage position of approximately 3,200 acres

    -- Low lifting costs

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