BreitBurn Energy Partners L.P. to Acquire Permian Basin Oil Properties.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- BreitBurn Energy Partners L.P. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BBEP) (BreitBurn) announced today it has signed a definitive agreement to acquire high quality oil properties in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of West Texas for approximately $29.0 million from Voyager Gas Corporation. BreitBurn is acquiring the Lazy JL Field, which has total proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. of approximately 2 million barrels of oil equivalent (MMboe) and a reserve life index in excess of 18 years. The acquisition is subject to customary closing conditions and purchase price adjustments (based on an effective date of January 1, 2007) and is expected to close by January 25, 2007. BreitBurn expects the acquisition, which will be financed through borrowings under the partnership's existing credit facility, will be immediately accretive to 2007 distributable cash flow per unit. Hal Washburn, BreitBurn's Co-Chief Executive Officer said, "This acquisition is consistent with our strategy of acquiring long-lived assets with predictable production from established fields. By adding these properties, we geographically diversify our asset base and establish a presence in the Permian Basin -- an area where we see additional consolidation opportunities. We are excited about the low-risk exploitation and development upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar associated with these assets and we are confident in our technical abilities to maximize the associated returns. At the same time, we continue to actively pursue other attractive acquisition targets that fit our business model and which are capable of generating incremental cash flow for our unitholders." Additional details of the Lazy JL Field acquisition: * Immediately accretive to 2007 distributable cash flow per unit * Current net production of approximately 300 boed (after royalties) * 98% oil (averaging 38 degrees API); base decline averages 5% per year * Cash flow stability achieved by hedging approximately 80% of expected production at $59.25 per barrel through 2009 * Low operating costs operating costs npl → gastos mpl operacionales of approximately $14.50 per net boe * Strong operating control (100% working interest; 75% net revenue interest) maximizes asset value * Seven proved undeveloped drilling locations that BreitBurn intends to drill in 2008 and 2009 * Extensive original oil in place (33.3 MMbbl) provides opportunities for BreitBurn to leverage its technical expertise and state-of-the-art production technologies. With proved ultimate recovery of 4.4 MMbbl, the remaining resource is 28.9 MMbbl The partnership will provide additional details when it reports fourth quarter and year-end results for 2006. TD Securities represented Voyager Gas Corporation in this transaction. About BreitBurn Energy Partners L.P. BreitBurn Energy Partners L.P. is an independent oil and gas limited partnership, recently formed by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties. BreitBurn's assets consist primarily of producing and non-producing crude oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally located in the Los Angeles Basin The Los Angeles Basin is the coastal sediment-filled plain located between the peninsular and transverse ranges in southern California in the United States containing the central part of the city of Los Angeles as well as its southern and southeastern suburbs (both in Los Angeles in California, the Wind River and Big Horn Big Horn is a tall peak in the Cascade Range in Washington, USA. At 2438+ meters (8,000 feet) in elevation, it is the highest point in Lewis County, Washington.[1] Big Horn, one of the Goat Rocks, is the second highest point on the ridge west of Mt. Basins in central Wyoming, and, if this transaction closes as expected, the Permian Basin in West Texas. Cautionary Statement Relevant to Forward -Looking Information for the Purpose of "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 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 such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates" 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. 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. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; the competitiveness of alternate energy sources or product substitutes; technological developments; potential disruption or interruption of the Partnership's net production due to accidents or severe weather; the effects of changed accounting rules under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by rule-setting bodies; and the factors set forth under the heading "Risk Factors" incorporated by reference from our Prospectus filed pursuant to Rule 424(b)(4) on October 5, 2006 (File No.333-134049), Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2006, and other filings with the Securities and Exchange Commission. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements. BBEP-IR |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion