Bill Barrett Agrees to $120M Uinta Purchase
Bill Barrett Corp. announced Wednesday that the Company has signed a purchase and sale agreement to acquire the owner and operator of a Uinta Basin property that includes an estimated 5 million barrels of oil equivalent (MMBoe) net proved reserves, an estimated 25 MMBoe net risked proved, probable and possible reserves, approximately 750 Boe per day production, associated gathering and transportation infrastructure and 20,155 net acres of mineral leasehold. The purchase price is $120 million, and the Company intends to fund the purchase using the Company's revolving line of credit.
The properties are located near the Company's Blacktail Ridge-Lake Canyon project and are prospective in the Green River and Wasatch formations. The proximity of the asset to existing Bill Barrett operations at Blacktail Ridge-Lake Canyon is expected to allow for drilling and operating efficiencies at both the new and existing programs.
Chairman, Chief Executive Officer and President Fred Barrett comments: "Our acquisition program is focused on 'bolt-on' opportunities, which are complementary to our current operations and further balance the oil component in our portfolio. This acquisition adds production, reserves and upside potential, while expanding our strategic footprint in an area of core Rockies expertise. Importantly, in combination with our recent announcement to accelerate natural gas liquids realizations at our Gibson Gulch program, we are setting forth a stronger growth trajectory for the next few years, better balancing the product mix in our portfolio and driving very strong returns."
The agreement is subject to customary provisions. The Company expects to provide further details upon closing, which is expected to occur in the second quarter of 2011.
Bill Barrett Corp., headquartered in Denver, Colorado, explores for and develops natural gas and oil in the Rocky Mountain region of the United States.