BreitBurn Energy Partners LP (BBEP) is buying oil and gas properties in the Permian Basin in Texas from CrownRock LP for approximately $282 million.
Los Angeles-based BBEP said the acquisition includes approximately 93 producing wells, which averaged net production of 2,900 boe/d in October, with output 60% weighted toward oil. Although the firm did not disclose the number of acres being acquired, it did reveal that the acreage includes more than 300 potential drilling locations.
BBEP said the acquired acreage includes an estimated reserve life of 15 years, with estimated proved reserves of 16.6 million boe. The acquisition is about 84% operated and has an average working interest of close to 66%.
BBEP CEO Hal Washburn said the acquisition was for bolt-on acreage that would increase the company's exposure to oil.
"This is our third acquisition from CrownRock, further augmenting our Permian Basin oil production base and development opportunities," Washburn said. "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."
BBEP said the deal, which is still subject to customary closing conditions and purchase price adjustments, is expected to close before the end of the year.