NiMin To Sell California Assets Following Wyoming Deal

To purchase 100% WI in 674-acre assets in CA San Joaquin Basin, gaining 185 BOE/d, 3.1 MMBOE proved.

California-based Southern San Joaquin Production LLC plans to buy the California assets of NiMin Energy Corp., Carpinteria, Calif., (Toronto: NNN; Pink Sheets: NEYYF) and its subsidiary, Legacy Energy Inc., for US$27 million in cash.

The assets are in California's San Joaquin Basin. According to the company recent marketing of its assets, it has average 100% working interest (77.4% net revenue interest) in 674 gross and net lease acres in Pleito Creek Field in Kern County. The properties feature 10 producing wells, six shut-ins, one saltwater disposal and one injector targeting the Santa Margarita formation. Net production as of November 2011 was 185 barrels of oil equivalent per day. Proved reserves as of November were 3.15 million barrels equivalent (859,000 proved developed producing) and proved and probable reserves were 9.45 million barrels equivalent.

The sale of the California assets is in addition to the recently announced sale of the company's assets in Wyoming's Big Horn Basin to BreitBurn Energy Partners LP, Los Angeles, (Nasdaq: BBEP) for $98 million, resulting in combined gross proceeds of approximately US$125 million.

Macquarie Tristone is financial advisor to NiMin and Legacy in connection with the sale of the Wyoming assets and the California assets.