Bill Barrett Corporation Announces Joint Venture to Explore and
Develop Denver Basin Acreage Position
DENVER, Jan. 24 /PRNewswire-FirstCall/ -- Bill Barrett Corporation (NYSE:BBG)
announced it has entered into a joint venture agreement to explore and develop
its 368,000 gross (345,000 net) acreage position in the eastern portion of the
Denver Basin. The Company signed an agreement with Berry Petroleum Company
(NYSE:BRY) to conduct joint operations in this region of the Rocky Mountains
located in eastern Colorado, western Kansas and southwestern Nebraska that is
identified as the Tri-State area. The joint venture will apply seismic
technologies to explore and, if successful, develop the Niobrara Formation for
biogenic gas, which lies at less than 2,000 feet, and apply seismic
technologies to evaluate oil potential in the Pennsylvanian Formations at
depths of 4,000 to 4,800 feet.
Bill Barrett Corporation will operate the geologic work program and the initial
two-well Niobrara drilling program consisting of one vertical and one
horizontal well. The Company will also oversee the acquisition and
interpretation of 400 linear miles of additional 2-D seismic data. Bill
Barrett Corporation built its acreage position and acquired and evaluated 224
linear miles of 2-D and 24 square miles of 3-D seismic data in 2003 and 2004.
The first two test wells are scheduled to be drilled in the first quarter of
2005. If the exploration and evaluation phase of this joint venture is
successful, Berry Petroleum will operate the development program of the assets.
At closing, currently scheduled for early February, Berry Petroleum will pay
approximately $5 million for a 50% working interest in the acreage position.
Each company will bear its proportional share of future expenditures.
Fred Barrett, president of Bill Barrett Corporation, said, "We are pleased to
enter into a joint venture with Berry Petroleum to explore, evaluate and
develop our acreage position in the Tri-State area. We own a significant
acreage position in this lightly developed region and expect the additional 400
mile 2-D seismic program to dramatically improve our ability to explore, drill
and develop natural gas and oil from the targeted formations. New drilling and
completion techniques, and 3-D 'bright spot' seismic technology should be
excellent tools to assess the structural complexity of the Niobrara Formation,
thus refining our well site selection process and improving our estimation of
Tri-State's resource potential over the next several years. This program is yet
another opportunity to apply our expertise in unconventional natural gas
formations in the Rocky Mountains to an area with significant resource
potential." About Bill Barrett Corporation Bill Barrett Corporation, headquartered in Denver, explores for and develops
oil and natural gas in the Rocky Mountain region of the United States. The
Company has projects in nine basins in the Rocky Mountains. Additional
information about Bill Barrett Corporation can be found at its web site
http://www.billbarrettcorp.com/.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements reflect our current
views with respect to future events, based on what we believe are reasonable
assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause
actual results to differ materially including, among other things, consummation
of the agreement with Berry Petroleum Company, exploration results, market
conditions, oil and gas price volatility, uncertainties inherent in oil and gas
production operations and estimating reserves, unexpected future capital
expenditures, competition, the success of our risk management activities,
governmental regulations and other factors discussed in our Registration
Statement on Form S-1 filed with the Securities and Exchange Commission
http://www.sec.gov/. DATASOURCE: Bill Barrett Corporation CONTACT: Robert W. Howard, Executive Vice President, Finance and Investor Relations, +1-303-293-9100, or Jim Felton, Investor Relations Manager, +1-303-312-8103, both of Bill Barrett Corporation Web site: http://www.billbarrettcorp.com/
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