This is in XCO's Backyard and Miller can not find oil assets to buy? LOS ANGELES--(BUSINESS WIRE)--
BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP - News) today announced it has signed two separate agreements to acquire oil and natural gas properties located in the Permian Basin in Texas for a combined price of approximately $220 million, subject to customary closing conditions and purchase price adjustments. The acquisitions will be funded with borrowings under the Partnership’s existing bank credit facility and are expected to close within 60 days.
Hal Washburn, BreitBurn's CEO, said, “We are very pleased to announce two attractive acquisitions that give us entry into the Permian Basin, an area of strong interest for the Partnership. These acquisitions will expand our geographic presence to seven states, further increase our exposure to oil, and give us the opportunity to leverage the expertise of a strong operator as we build a local team. The properties are excellent MLP assets that have significant recoverable oil in place and predictable development drilling outcomes with over 160 potential drilling locations. We believe the acquisitions will be immediately accretive to distributable cash flow per unit upon closing.”
Highlights of the combined acquisitions include:
-- Current net production of approximately 2,100 Boe/day (56% oil)
-- Estimated proved reserves of approximately 9.5 MMBoe
-- Estimated reserve life index of over 13 years based on estimated proved reserves
-- Approximately 40 existing wells and over 160 potential drilling locations
-- Net acreage position of approximately 4,600 acres
-- Low lifting costs of approximately $6.00 per Boe
-- Oil price received is currently WTI less approximately $3.00 per barrel of oil
with what money???? The new capital is making a killing. XCO needs to raise cash. Cracks me up that Miller keeps talking about acquisitions and in the same sentence he says we need to delever the balance sheet.
This was discussed on the cc and seemed to be somewhat of a contentious subject ... to buy into what some preceive to be an overly priced commodity presently or add to assets currently held of another commodity which is near ten year lows.