2010-01-07-2010-01-04-2009-12-31

Bought 100% WI in offshore CA Beta Field, San Pedro Bay pipeline, gaining 2,700 BOE/d, 71.7 MMBOE proved.

Rise Energy Partners II LLC has acquired the remaining California assets of bankrupt Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto: PFE) including Beta Field and the San Pedro Bay pipeline for an undisclosed price. As consideration, the lenders effectively tendered all of their debt.

The assets include 100% operated working interest in Beta Field 15 miles south of Long Beach. Operations are based on three offshore platforms in the San Pedro Bay area of the Outer Continental Shelf in federal waters in depths from 200 to 800 feet. Pacific operates all of the producing wells and locations. The properties include 35 producing wells, 19 active injectors, three water supply wells, two disposal wells, 20 proved developed nonproducing opportunities and 16 proved undeveloped (PUD) locations.

Net production averaged 2,700 barrels of oil per day in February 2009. Proved reserves are 71.7 million net. Cash flow for the 12-month period ending January 2009 was $31.8 million.

Pacific Energy will continue to operate these assets until the buyers' operating company receives necessary regulatory approvals, and the existing team of employees will transition to the new operating company.

In December, Pacific Energy sold its Alaskan assets to Cook Inlet Energy LLC, an entity owned by Huntsville, Tenn.-based Miller Petroleum Inc. (dba Miller Energy Resources) (OTCBB: MILL) for $2.25 million. These two transactions complete the sale of the company's properties and it will move to complete its liquidation.