On Oct. 27, Breitburn Energy Partners LP (NASDAQ: BBEP) said it acquired oil and gas properties from Antares Energy (ASX: AZZ.AX).
The properties, adjacent to Los Angeles-based Breitburn’s Midland Basin operations, were purchased Oct. 24 for $50 million and 4.3 million of Breitburn’s common units, the company added.
There are 4,600 gross (about 3,700 net) acres in Howard County, Texas, that produced on average roughly 600 barrels of oil equivalent per day (boe/d). Breitburn’s gross surface acreage in the basin grew by about 25% and its gross effective acreage grew by about 20%, the company noted.
There are 32 potential horizontal drilling locations, Breitburn added, noting the potential for at least 160 gross laterals and the included horizontal drilling infrastructure.
“We are pleased to bolt-on these properties to our portfolio in the Permian. This prospective acreage dovetails nicely with our existing Howard County acreage and greatly enhances the horizontal development program in the Permian that we announced last quarter,” said Hal Washburn, CEO.
“In addition, our expanded, contiguous footprint will provide us with greater flexibility in our ongoing discussions with potential operators and financial sponsors to create more ‘MLP friendly’ assets from our horizontal program,” he continued.
The transaction’s effective date is Oct. 1.
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