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Breitburn Energy Partners LP Message Board

  • rlp2451 rlp2451 Jun 24, 2013 8:57 AM Flag

    BBEP to Acquire Whiting Properties in Oklahoma

    BreitBurn Energy Partners L.P. today announced it has signed a definitive agreement with Whiting Oil and Gas Corporation, a wholly-owned subsidiary of Whiting Petroleum Corporation to acquire Whiting's interests in the Postle and North East Hardesty oil fields, along with associated midstream assets, located primarily
    in the Oklahoma Panhandle, for approximately $860 million. In connection with the execution of the definitive agreement, the Partnership deposited approximately $86 million with Whiting, which will be credited toward the purchase price due at closing. The acquisition is subject to customary closing conditions and purchase price adjustments and is expected to close by July 31,2013. The Partnership is acquiring additional interests in certain of the acquired assets from other sellers for an additional $30.2 million.

    Hal Washburn, BreitBurn's CEO, said, "We expect this acquisition to generate significant accretion to our distributable cash flow per unit and create lon g-term value for unitholders. These assets are an excellent
    fit for our portfolio, with significant recoverable oil in place and a long horizon of production visibility. We anticipate a decade or more of very low decline production from these assets, which balances some of our more development-focused acquisitions completed last year. With current production from these properties comprised of 98% liquids, we expect our total net liquids production to increase by over 100% from the fourth quarter of 2012 to the fourth quarter of 2013 and exit 2013 with liquids comprising approximately 63%
    of our total net production. The acquisition is complementary to our Permian Basin operations, and we expect that it will strengthen our technical and exploitation capabilities and broaden our intellectual capital with tertiary flood expertise that can potentially be applied to other BreitBurn properties."

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