Energy income trust adds to Southern California holdings

Gary Park

Provident Energy Trust, one of the few income trusts operating outside the Western Canada sedimentary basin, has increased its portfolio of southern California assets by acquiring several oil-producing properties for C$60 million.

Through its U.S. subsidiary, BreitBurn Energy, Provident announced a deal Sept. 13 with a private company to buy properties producing 1,400 barrels per day of medium light grade crude.

The purchase also gives BreitBurn 9.1 million barrels of proved reserves and 9.7 million barrels of probable reserves.

The properties are in the Santa Monica basin’s Orcutt field and complement Provident’s operations in the Los Angeles basin.

Provident took a 92 percent stake in BreitBurn in June to gain production of 4,200 barrels of oil equivalent per day, 90 percent of it light/medium oil and 10 percent natural gas.

Provident has forecast average 2004 output of 25,500 boe per day, divided equally between oil and gas.