BreitBurn Energy to buy oil fields in California
LOS ANGELES (AP) — BreitBurn Energy Partners L.P. said Friday that it will acquire oil properties in California for $40 million in cash and 3 million units, which represent a limited stake in the oil and gas partnership.
The Los Angeles-based company said the acquisition of Belridge Field, located in Kern County, adds high-quality oil assets to its portfolio. The deal — its fourth acquisition of 2012 — is expected to close this year.
Belridge Field is one of the largest fields in California with significant oil in place, according to BreitBurn. Estimated average daily net production as of October was about 825 barrels of oil equivalent, of which 85 percent was oil.
BreitBurn will issue the common units for the deal in a private placement.
Shares of the company increased 29 cents to $18.06 by midmorning. Its shares remain in the middle of its 52-week trading range of $16.06 to $20.47.