NiMin Energy moves to dissolve company

Out of business: NiMin Energy starts selling operations ahead of shareholder vote on plan to liquidate and dissolve

Californian minnow NiMin Energy has announced its plans to liquidate and dissolve the company with a bang, selling one of its two key producing assets to BreitBurn Energy Partners for around $98 million.

The 3200-net-acre Big Horn Basin oil asset in Park County, Wyoming produces around 600 barrels of oil per day as of last month.

The Carpinteria-based, Toronto-listed explorer has not even put its dissolution plans to shareholders yet, but will now present both today’s sale and the move to wind up the company - begun on the recommendation of financial advisors Maquarie Capital - for shareholders to vote upon.

NiMin Energy also said that it was working toward selling its only other significant producing asset in the San Joaquin basin.  It also holds acreage onshore southern Louisiana.

BreitBurn president Randy Breitenbach called the acquisition “another excellent bolt-on” for the company in the Big Horn Basin given the assets adjoin its existing operations.  

Estimated proved reserves at the property run to around 5.9 million barrels of oil equivalent with additional unproved potential, according to BreitBurn.

BreitBurn Energy Partners is a publicly-traded independent limited partnership with assets in Michigan, Wyoming, California, Florida, Indiana, and Kentucky.

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