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United States : BREITBURN ENERGY inks deals to purchase oil and gas properties in TEXAS
Publish Date : 14-May-2012
Two individual agreements were signed by BreitBurn Energy Partners to purchase oil and natural gas properties in the Permian Basin in Texas, US, in a deal worth $220m. With this acquisitions featuring 4,600 acres, it will venture into the Permian Basin.
CEO of BreitBurn, Hal Washburn stated that followed by this acquisitions, the company will be able to expand its geographic existence to seven states and additionally raise its exposure to oil. Washburn said, \"The properties are excellent MLP assets that have significant recoverable oil in place and predictable development drilling outcomes with over 160 potential drilling locations.\"
To be purchased assets is expected to have a current net production of about 2,100 barrels of oil equivalent (Boe)/day, of which 56% is oil, with estimated proved reserves of 9.5 MMBoe. Having an estimated reserve life index of over 13 years, the properties includes 40 existing wells and over 160 potential drilling locations.
Completion of the trasaction is likely to be within a period of two months and upon closure would be accretive to cash flow.
