UPDATE 1-Nimin Energy to dissolve, sells Wyoming assets

Wed Apr 25, 2012 7:41am EDT

* Sells Wyoming asset to BreitBurn Partners for about $98 mln

* Looking for buyers for San Joaquin asset in California

April 25 (Reuters) - Oil and gas producer NiMin Energy Corp said it would dissolve itself and sell its assets and use the proceeds to clear its debts, ending a four-month-old strategic review process that started in November.

NiMin said it would sell its assets in Wyoming's Big Horn Basin to BreitBurn Energy Partners LP for about $98 million.

BreitBurn expects the deal to immediately add to its distributable cash flow.

The assets sold to BreitBurn produced about 600 barrels of oil equivalent per day (boe/d) in March and are estimated to hold proved reserves of about 5.9 million barrels oil equivalent.

NiMin is currently seeking a buyer for its oil and natural gas assets in the San Joaquin Basin in California.

The company said debt and potential liabilities of the company were currently estimated at about $55.6 million to $56.15 million.

NiMin began evaluating its options in November as it believed that its assets were undervalued compared with its share price at the time.

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