UPDATE 1-Provident sells BreitBurn Energy stake for $305 mln

(Adds details. In U.S. dollars unless noted)

CALGARY, Alberta, July 30 (Reuters) - Canada's Provident Energy Trust (PVE_u.TO: Quote, Profile, Research) will sell its stake in U.S. oil producer BreitBurn Energy Co (BBEP.O: Quote, Profile, Research) for $305 million, saying it wants to focus on its Canadian operations.

Provident said on Wednesday it will sell the interest to Metalmark Capital Partners, Greenhill Capital Partners and BreitBurn's management. It did not specify the size of the stake.

Provident is to receive $295 million in cash and a $10 million note for its BreitBurn stake and will use the proceeds to cut debt.

Provident said in February it was mulling the sale of its U.S. investments as it looked for ways to cope with the pending end of tax breaks for Canadian companies structured as income trusts. Income trust distributions to unitholders will be taxed starting in 2011.

Last month Provident sold its stakes in some oil-producing partnerships in the United States to BreitBurn Energy Partners for $345 million, bringing the total proceeds for the sale of its U.S. investments to $650 million.

Provident units rose 27 Canadian cents to C$10.50 on the Toronto Stock Exchange. The units have dropped 16 percent over the past 12 months.

BreitBurn shares rose 23 cents to $17.22 on the Nasdaq Exchange. ($1=$1.02 Canadian) (Reporting by Scott Haggett; editing by Frank McGurty)