BreitBurn Buys NE Hardesty Fields

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$860.0MM
Description

Closed the sale of EOR projects in Postle, Northeast Hardesty fields.

Whiting Petroleum Corporation (NYSE: WLL) has closed on its announced sale of enhanced oil recovery projects in the Postle and Northeast Hardesty Fields in Texas County, Oklahoma to Breitburn Energy Partners LP (Nasdaq: BBEP) for about $860 million.

The final proceeds are expected to be closer to $836 million after closing adjustments are made. Whiting will operate the properties until Oct. 31.

The deal will add about 7,400 barrels of oil equivalent per day in net production to Breitburn’s portfolio, about 87% of which is oil and 11% NGLs, as of April 2013. The estimated reserve life index of approximately 13 years is based on estimated proved reserves of approximately 35 million barrels of oil equivalent (BOE) as of April 1, 2013.

Wells Fargo & Co. acted as financial advisor to Whiting with respect to this transaction and Raymond James Financial, Inc. provided a fairness opinion to the company’s board of directors. Foley & Lardner LLP acted as legal advisor to Whiting with respect to this transaction.

Breitburn Energy Partners is an upstream energy company based in Los Angeles. Whiting is based in Denver, Colo.