BreitBurn Energy Partners LP to acquire properties in Wyoming
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BreitBurn Energy Partners L.P. (the “Partnership”) (NASDAQ:BBEP) today announced it has signed a definitive agreement to acquire oil properties in Niobrara County, Wyoming for $58.1 million. The properties currently produce approximately 500 Boe/day (100 percent oil). The acquisition is subject to customary closing conditions and purchase price adjustments (based on an effective date of July 1, 2011) and is expected to close in the third quarter of 2011.
Randy Breitenbach, BreitBurn's President said, “We are pleased to announce this acquisition, which is consistent with our strategy of acquiring long-lived assets with a predictable production profile and an inventory of low-risk exploitation and development opportunities. By adding these assets, we are increasing our presence in Wyoming, which allows us to leverage our existing regional management team in an area where we see additional consolidation opportunities. We are purchasing these properties for an attractive valuation, and we believe that this acquisition will be immediately accretive to distributable cash flow per unit. 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.”
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