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BreitBurn Energy Partners – BBEP – Pleased to announce two attractive acquisitions

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BreitBurn Energy Partners L.P. (NASDAQ:BBEP) 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

About BreitBurn Energy Partners L.P.  – BBEP

BreitBurn Energy Partners L.P. (BBEP) is a publicly-traded independent oil and gas limited partnership focused on the acquisition, exploitation, development, and production of oil and gas properties. The Partnership’s producing and non-producing crude oil and natural gas reserves are located in Michigan, Wyoming, California, Florida, Indiana and Kentucky.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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