DENVER, Aug. 15, 2016 /PRNewswire/ -- 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 at www.billbarrettcorp.com under the "Investor Relations" section.
All statements in this press release, other than statements of historical fact, are 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. Words such as expects, forecast, guidance, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein; however, these are not the exclusive means of identifying forward-looking statements. In particular, statements regarding expected capital expenditures and projects, costs, prices and differentials, production, cash flows, balance sheet attributes and rates of return are forward-looking statements. These and other forward-looking statements in this press release are based on management's judgment as of the date of this release and are subject to numerous risks and uncertainties. Actual results may vary significantly from those indicated in the forward-looking statements. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC, and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, all of which are incorporated by reference herein, for further discussion of risk factors that may affect the forward-looking statements. The Company encourages you to consider the risks and uncertainties associated with projections and other forward-looking statements and to not place undue reliance on any such statements. In addition, the Company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in Denver, Colorado, develops oil and natural gas in the Rocky Mountain region of the United States. Additional information about the Company may be found on its website www.billbarrettcorp.com.
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SOURCE Bill Barrett Corporation