BreitBurn Invests in More Wyoming Oil PropertiesWednesday, April 25, 2012
BreitBurn Energy Partners L.P. on Wednesday said it plans to spend $98 million to acquire oil drilling land in Wyoming.
The Los Angeles independent oil and gas production partnership said the deal will be immediately accretive to its cash flow. The fields, located in Park County in the Big Horn Basin, are owned by Legacy Energy Inc., a unit of NiMin Energy Corp. of Carpinteria.
The fields now produced about 600 barrels of oil per day, and will add to the BreitBurn holdings in the state. The company, which built its name producing oil from mature fields in the Los Angeles Basin, last year paid $58.1 million for oil properties in Wyoming’s Niobrara County.
The Park County deal, which must still be approved by NiMin shareholders, is expected to close within 90 days.
“These fields adjoin our existing Big Horn operations, produce 100-percent oil, have long-lived reserves and significant original oil in place,” said President Randy Breitenbach in a statement. “This acquisition will allow us to continue to exploit our regional operating expertise. This is a truly bolt-on acquisition which moves forward our 2012 operating plan and growth-through-acquisition strategy.”
Shares closed up 10 cents, or less than 1 percent, to $18.37 on the Nasdaq.