Los Angeles-based BreitBurn Energy Partners LP has inked a definitive agreement to purchase additional oil and natural gas assets in the Permian basin from CrownRock LP for $282 million.
The assets contained average net production of 2,900 boe/d in October, an overall reserve life index of more than 15 years based on estimated proved reserves of 16.6 million boe, with 93 producing wells and more than 300 potential drilling locations.
“This is our third acquisition from CrownRock, further augmenting our Permian basin oil production base and development opportunities,” said Hal Washburn, BreitBurn's chief executive officer.
“This acquisition provides us with new interests in additional oil and gas properties adjacent to our existing operations as well as incremental interests in oil and gas properties that we already own and operate,” Washburn added.
The assets are 84% operated with 66% average working interest, and the purchase is expected to close this year.
The partnership earlier this year agreed to acquire Oklahoma Panhandle assets from Whiting Oil and Gas Corp., a unit of Whiting Petroleum Corp., for $860 million (OGJ Online, June 24, 2013).
BreitBurn’s producing and nonproducing crude oil and natural gas reserves are in Texas, Oklahoma, Michigan, Wyoming, California, Florida, Indiana, and Kentucky.