US-based BreitBurn Energy Partners has completed the approximately $846m acquisition of oil properties from Whiting Oil and Gas in the Postle and North East Hardesty oil fields.
As part of the deal, the company acquired associated midstream assets located in the Panhandle region of Oklahoma.
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The company also acquired additional interests in assets from other sellers for an additional $30m.
As of April, the acquired assets have produced aprrorximately 7,400 barrels of oil equivalent (BOE), 87% oil and 11% natural gas liquids.
The estimated reserve life index of the acquired assets is around 13 years, based on estimated proven reserves of around 35 million BOE.
The acquired midstream assets will allow the integrated management of carbon dioxide compression, delivery and recycling. It will also enable the export of oil through the company’s wholly-owned pipeline.
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By GlobalDataBreitBurn Energy CEO Hal Washburn said that the acquisition is expected to generate a significant distributable cash flow per unit and create long-term value for unit holders.
"It also bolsters our growing platform of assets, personnel, and technical capabilities in the Mid-Continent and Permian Basin and positions us to take advantage of what we believe to be great opportunities for further expansion in those regions," Washburn added.
"We look forward to building upon Whiting’s success and producing a steady stream of oil from these fields for many years to come."
BreitBurn Energy has producing and non-producing crude oil and natural gas assets in Michigan, Wyoming, California, Texas, Florida, Indiana, and Kentucky.
Image: The acquired assets have produced about 7,400 BOE per day by April 2013. Photo: courtesy of Michael Trolove.
