Breitburn Energy announces acquisition of additional Permian Basin interests and properties for ~$282 mln (BBEP) : Co has signed a definitive agreement to acquire additional oil and natural gas properties in the Permian Basin in Texas for ~$282 million, subject to customary closing conditions and purchase price adjustments, from CrownRock, L.P. The acquisition will be funded with borrowings under the Partnership's existing bank credit facility and is expected to close in 2013. The Partnership intends to immediately enter into at-the-money commodity hedges to provide price protection for a substantial portion of the proved production for five years.
Highlights of the acquisition include: -- Estimated average daily net production of ~2,900 Boe/day for October 2013 (60% oil) -- Estimated reserve life index of over 15 years based on estimated proved reserves of ~16.6 MMBoe -- ~93 producing wells and over 300 potential drilling locations -- Low lifting costs of ~$7.00 per barrel -- Oil price received is currently WTI less ~$3.00 per barrel -- ~84% operated with ~66% average working interest.