BreitBurn to buy oil and gas assets in Permian basin for $282m

US-based BreitBurn Energy Partners has signed an agreement with CrownRock to acquire additional oil and natural gas assets in the Texas Permian basin for around $282m.

The estimated average daily net production from acquired assets is around 2,900 BOE per day, as of October 2013.

BreitBurn noted that reserve life index of assets is about 15 years based on estimated proved reserves of approximately 16.6 MMBoe.

The acquired assets are expected to include about 93 producing wells and over 300 potential drilling locations, while about 84% operated with approximately 66% average working interest.

BreitBurn Energy Partners CEO Hal Washburn said: "This is our third acquisition from CrownRock, further augmenting our Permian Basin oil production base and development opportunities.

"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 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."

The acquisition, which is expected to be completed before the end of the year, will be funded with borrowings under the partnership’s existing bank credit facility.

The company has producing and non-producing crude oil and natural gas reserves in Michigan, Wyoming, Oklahoma, California, Florida, Texas, Indiana and Kentucky.