The oil and gas limited partnership stated the acquisitions covering 4,600 acres will give it an entry into the Permian Basin, an area of strong interest for the company.
BreitBurn CEO Hal Washburn said the acquisitions will expand the company’s geographic presence to seven states and further increase its exposure to oil.
"The properties are excellent MLP assets that have significant recoverable oil in place and predictable development drilling outcomes with over 160 potential drilling locations," added Washburn.
The assets to be acquired 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.
The properties have 40 existing wells and over 160 potential drilling locations with an estimated reserve life index of over 13 years.
The acquisition is expected to close within two months and will be accretive to cash flow upon closing.
