BreitBurn Sets Eyes On NiMin’s Wyoming Assets

To buy WY assets iwith more than 90% average WI in 3,225 net acres in Ferguson Ranch, Willow Draw, Hunt and Sheep Point fields in Park County, gaining 600 BOE/d, 5.9 MMBOE proved.

BreitBurn Energy Partners L.P. (the “Partnership”) (BBEP) announced today that it has completed the acquisition of oil properties located in Park County in the Big Horn Basin of Wyoming for approximately $93 million from Legacy Energy, Inc., a wholly-owned subsidiary of NiMin Energy Corp, subject to post-closing adjustments. The acquisition was originally announced on April 25, 2012.

Hal Washburn, CEO, said, “We are pleased to announce the completion of this bolt-on acquisition in the Big Horn Basin of Wyoming. This transaction demonstrates the continued success of our growth through acquisitions strategy. In addition, we have two other previously announced acquisitions in the Permian Basin expected to close in early July, which when completed, will bring our 2012 year to date total acquisitions to approximately $300 million. These assets are excellent additions to our portfolio and we remain well positioned to continue to be an active acquirer for the remainder of the year.”

BreitBurn Energy Partners LP, Los Angeles, (Nasdaq: BBEP) plans to purchase oil properties in Park County in the Big Horn Basin of Wyoming from Legacy Energy Inc., a subsidiary of NiMin Energy Corp., Carpinteria, Calif. (Toronto: NNN; OTCBB: NEYYF) for approximately $98 million.

The Wyoming assets are in Ferguson Ranch, Willow Draw, Hunt and Sheep Point fields in Park County. The leases feature an average working interest of more than 90% covering 3,422 gross acres (3,225 net) with 2,241 acres held by production. The properties feature 36 producing wells, 12 shut-ins, one saltwater disposal and two injectors targeting the Tensleep, Phosphoria and Dinwoody formations.

Production was approximately 600 barrels of oil equivalent per day (100% oil) in March. Proved reserves are approximately 5.9 million barrels equivalent.

Upside includes approximately 45 existing well locations and substantial upside potential with infill drilling opportunities.

BreitBurn president Randy Breitenbach says, “We are pleased to announce another excellent bolt-on oil acquisition in the Big Horn Basin of Wyoming, an area where we have significant oil producing assets and extensive experience with our legacy properties. These fields adjoin our existing Big Horn operations, produce 100% oil, have long-lived reserves and significant original oil in place. This acquisition will allow us to continue to exploit our regional operating expertise. We have also identified numerous infill drilling locations that we expect to begin drilling later this year which should drive meaningful production growth from these assets.”

The deal is expected to close by late July.