Denver, Colorado – (PR Newswire)
– January 24, 2005 – 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 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
www.sec.gov.
Source: Bill Barrett Corporation
