Breitburn Energy Partners Acquires Bolt-On Properties in Permian Basin
October 27 2014 - 8:00AM
Business Wire
Breitburn Energy Partners LP (NASDAQ:BBEP) announced that it
acquired oil and gas properties adjacent to its existing Midland
Basin operating areas from Antares Energy (ASX:AZZ) on October 24,
2014. The purchase price is $50 million, subject to customary
post-closing adjustments, plus 4.3 million Breitburn common
units.
Hal Washburn, Breitburn’s CEO, said, “We are pleased to bolt-on
these properties to our portfolio in the Permian. This prospective
acreage dovetails nicely with our existing Howard County acreage
and greatly enhances the horizontal development program in the
Permian that we announced last quarter. In addition, our expanded,
contiguous footprint will provide us with greater flexibility in
our ongoing discussions with potential operators and financial
sponsors to create more ‘MLP friendly’ assets from our horizontal
program.”
A summary of the key highlights of the transaction are included
below:
- ~4,600 gross (~3,700 net) acres in
Howard County
- Estimated average daily production for
October of ~600 boepd
- Increases Breitburn’s Midland Basin
gross surface acreage by ~25% and gross effective acreage by
~20%
- Adds 32 potential horizontal locations
to Breitburn’s existing inventory
- Potential for at least 160 laterals
(gross) on multiple benches
- 100% operated; ~80% average working
interest
- Acreage includes infrastructure to
support horizontal drilling
- The transaction has an effective date
of October 1, 2014
About Breitburn Energy Partners
LP
Breitburn Energy Partners LP is a publicly-traded independent
oil and gas master limited partnership focused on the acquisition,
exploitation, development and production of oil and gas properties
throughout the United States. Breitburn’s producing and
non-producing crude oil and natural gas reserves are located in
Michigan, Oklahoma, Texas, Wyoming, California, Florida, Indiana
and Kentucky. See www.breitburn.com
for more information.
Private Placement
Breitburn’s common units to be issued as partial consideration
in connection with this acquisition will be issued in a private
placement and will not be registered under the Securities Act of
1933, as amended (the “Securities Act”), or applicable state
securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state securities laws. The number of common units being issued as
partial consideration in connection with this acquisition will not
be adjusted to account for changes in the unit price or for
purchase price adjustments.
The information contained in this press release is neither an
offer to sell nor a solicitation of an offer to buy any of
Breitburn’s common units or any other securities of Breitburn.
Cautionary Statement Regarding
Forward-Looking Information
This press release contains forward-looking statements relating
to Breitburn’s operations that are based on management’s current
expectations, estimates and projections about its operations. Words
and phrases such as “believe,” “expect,” “future,” “impact,”
“intend,” “will be” 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 Breitburn’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,
Breitburn 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.
BBEP-IR
Breitburn Energy Partners LPAntonio D’AmicoVice President,
Investor Relations & Government AffairsorJessica TangInvestor
Relations, Manager(213) 225-0390