Bill Barrett Corporation (the “Company”) (NYSE: BBG) announced today that it will resume its extended reach lateral (“XRL”) development program in the Denver-Julesburg (“DJ”) Basin during the third quarter of 2016. It is expected that up to 12 gross XRL wells will spud prior to the end of year and be placed on initial production in the first quarter of 2017. The Company projects that its 2016 capital expenditures will now be at the high end of its previously disclosed guidance range of $75-$100 million to account for the additional drilling activity.
Chief Executive Officer and President Scot Woodall commented, “We continue to have strong confidence in the underlying economics of our XRL development program. We believe that lower demonstrated well costs and operating expenses, combined with a narrowing DJ Basin oil price differential, will generate a competitive rate-of-return in the current commodity price environment. While the increased activity will not impact our 2016 production, it builds increasing operational momentum as we move in to 2017. We remain positioned to be cash flow positive this year even at the upper end of our capital expenditure guidance range, allowing us to preserve the strength of our liquidity position.”
An updated corporate presentation containing information included within this press release will be posted to the Company’s website prior to market open on Monday, August 15, 2016. The presentation can be found atwww.billbarrettcorp.com under the “Investor Relations” section.