Breitburn Energy raises output forecast

by on August 7, 2012 1:13 pm GMT

The Los Angeles-based, New York-listed partnership said it now expected to produce
between 8.3 million and 8.6 million barrels of oil equivalent (boe) this year,
and was hiking capital investment for the year to $137 million.

The company had originally forecast in February a production
range for 2012 of between 7.8 million and 8.3 million boe, with full-year
capital spending of around $68 million.

Chief executive Hal Washburn said the explorer would be
splashing out the increased capital budget on “develop our newly-acquired
assets and to pursue a series of attractive oil projects identified in our
legacy assets as well”.

In recent months, the explorer
made three acquisitions, acquiring mostly oil properties in the Permian Basin
in Texas from Element Petroleum LP for $150 million and CrownRock LP for $70
million, respectively, and another set of oil properties in the Big Horn Basin
of Wyoming from NiMin Energy for around $93 million.

During the past three months,
Breitburn Energy Partners hiked production by 18% year-on-year to 1.95 million
boe, with net income up to $92.5 million from the year-ago period’s $57.52