2009-09-18--2009-07-17

Acquired Lazy JL Field in W. TX Permian Basin, gaining 245 BOE/d, 1.2 MMBOE proved.

The Los Angeles-based upstream MLP BreitBurn Energy Partners LP, (Nasdaq: BBEP) continuing its efforts to stay ahead of a potential borrowing-base reduction in the fall, has sold its Lazy JL Field in the Permian Basin of West Texas to an undisclosed privately held buyer for $23 million. Proceeds will be used to pay debt. The company values the deal at approximately $94,000 per flowing barrel per day. The properties produced approximately 245 barrels of oil equivalent per day during the first five months of 2009 (96% oil). As of year-end 2008, estimated proved reserves were 1.2 million barrels equivalent, or approximately 1% of the partnership's total estimated proved reserves of 103.6 million barrels equivalent. Following the sale, BreitBurn's borrowing base was reduced from $735 million to $732 million. Hal Washburn, BreitBurn's chairman and co-chief executive, says, "With the sale of the Lazy JL Field at this attractive price, the partnership realized significant value for its noncore Permian Basin assets…The sale accelerates our 2009 debt reduction efforts and provides the partnership with additional financial flexibility given the transaction's limited impact on our borrowing base." He adds the company will continue to consider "all reasonable alternatives" for further debt reduction. BreitBurn has interests in the Antrim shale in Michigan, the Los Angeles Basin in California, the Wind River and Big Horn basins in central Wyoming, the Sunniland trend in Florida, and the New Albany shale in Indiana and Kentucky.