Bill Barrett Corp. to resume DJ basin development campaign

DENVER, Colorado -- Bill Barrett Corporation will resume its extended reach lateral (XRL) development program in the Denver-Julesburg (DJ) basin during the third quarter, the company said Monday.

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.

"We continue to have strong confidence in the underlying economics of our XRL development program,” CEO and President Scot Woodall said. “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."