December 13, 2013

BreitBurn Energy Partners L.P. Announces Acquisition of Additional Permian Basin Interests and Properties for Approximately $282 Million

LOS ANGELES--(BUSINESS WIRE)-- BreitBurn Energy Partners L.P. (the "Partnership") (NASDAQ:BBEP) today announced it has signed a definitive agreement to acquire additional oil and natural gas properties in the Permian Basin in Texas for approximately $282 million, subject to customary closing conditions and purchase price adjustments, from CrownRock, L.P. The acquisition will be funded with borrowings under the Partnership's existing bank credit facility and is expected to close in 2013. The Partnership intends to immediately enter into at-the-money commodity hedges to provide price protection for a substantial portion of the proved production for five years.

Hal Washburn, BreitBurn's CEO said, "We are very pleased to announce this opportunistic, bolt-on acquisition that further increases our exposure to oil via the addition of high quality, familiar assets with significant recoverable oil in place. This is our third acquisition from CrownRock, further augmenting our Permian Basin oil production base and development opportunities. 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. We believe the acquisition will be immediately accretive to distributable cash flow per unit at closing."

Highlights of the acquisition include:

-- Estimated average daily net production of approximately 2,900 Boe/day for October 2013 (60% oil)

-- Estimated reserve life index of over 15 years based on estimated proved reserves of approximately 16.6 MMBoe

-- Approximately 93 producing wells and over 300 potential drilling locations

-- Low lifting costs of approximately $7.00 per barrel

-- Oil price received is currently WTI less approximately $3.00 per barrel

-- Approximately 84% operated with approximately 66% average working interest

About BreitBurn Energy Partners L.P.

BreitBurn Energy Partners L.P. 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, Oklahoma, California, Florida, Texas, Indiana and Kentucky. See www.BreitBurn.com for more information.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements relating to the Partnership's operations that are based on management's current expectations, estimates and projections about its operations. Words and phrases such as "expected," "estimated," "future," "growth," "potential," "believe," "will be," "should" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. These include risks relating to the Partnership's financial performance and results, availability of sufficient cash flow and other sources of liquidity to execute our business plan, prices and demand for natural gas and oil, increases in operating costs, uncertainties inherent in estimating our reserves and production, our ability to replace reserves and efficiently develop our current reserves, political and regulatory developments relating to taxes, derivatives and our oil and gas operations, risks relating to our acquisitions, and the factors set forth under the heading "Risk Factors" incorporated by reference from our Annual Report on Form 10-K filed with the Securities and Exchange Commission, and if applicable, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

Estimated Proved Reserves

Reserve engineering is a complex and subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, estimates prepared by one engineer may vary from those prepared by another. The estimate of reserves contained in this press release was internally prepared based on information available through the acquisition process. Estimates of proved reserves for our oil and gas properties for year end 2013 will be prepared by independent reserve engineers using the information available at that time. Upon completion of such a review, our independent engineers' estimate of these proved reserves as of December 31, 2013 could be materially different from our management's estimates of such reserves as described above.

BBEP-IR

BreitBurn Energy Partners L.P.
Investor Relations Contacts:
James G. Jackson
Executive Vice President and Chief Financial Officer
213-225-5900 x273
or
Jessica Tang
Investor Relations
213-225-5900 x210

Source: BreitBurn Energy Partners L.P.

News Provided by Acquire Media


Close window | Back to top

Copyright 2014 BreitBurn Energy Partners L.P.