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BreitBurn to buy oil field interests for $860M

LOS ANGELES (AP) -- BreitBurn Energy will acquire interests in a pair of oil fields for about $860 million from Whiting Petroleum Corp.

The stakes include the Postle and North East Hardesty oil fields, along with related midstream assets, mainly located in the Oklahoma Panhandle.

BreitBurn has already transferred about $86 million to Whiting, which will be credited toward the total price at closing.

The acquisition is expected to close by July 31. BreitBurn said it's also acquiring additional interests in some of the acquired assets from other sellers for another $30.2 million.

BreitBurn CEO Hal Washburn said the acquisition is expected to significantly boost the partnership's distributable cash flow per unit and create long-term value for unit holders.

With current production from the properties comprised of 98 percent liquids, the partnership said it expects its total fourth-quarter net liquids production to more than double from year-ago levels and to end 2013 with liquids comprising 63 percent of its total net production.

BreitBurn Energy Partners LP units fell 96 cents, or 5 percent, to $16.95 in morning trading.