Bill Barrett to sell non-core Uinta Basin assets in US

Bill Barrett has signed an agreement to sell its remaining non-core assets located in the Uinta Basin, US, to undisclosed buyers, in a deal valued at an aggregate amount of around $110m.

The assets under sale consideration produced about 2,300 barrels of oil equivalent a day (boed) during the third quarter of this year.

As of 31 December last year, the assets had estimated proved reserves of 12 million barrels of oil equivalent (mmboe).

Bill Barrett CEO and president Scot Woodall said: “This sale transitions us into a pure-play Denver-Julesburg (DJ) Basin company, further streamlines our operational cost structure and strengthens our balance sheet and liquidity.

“We have a top-tier oil position in the DJ Basin with our 2017 capital programme underpinning a strong growth profile in 2018 as we expect to generate greater than 30% growth from our Northeast Wattenberg assets.

“We anticipate that our 2018 capital programme will be fully funded as we exit 2017 with a significant cash position and an improved leverage ratio.”

As of 30 September this year, the company had a net debt of $521.5m.

For the third quarter of this year, Barrett’s production sales volumes stood at 1.92mmboe, while oil volumes totalled around 1.2mmbbls.

The company also increased its 2017 production guidance to 6.9mmboe to 7.1mmboe.

However, capital expenditure in the third quarter was reduced to $57m from the previous guidance range of $65m to $75m.

Subject to customary closing conditions, the transaction is scheduled to be completed by the end of the year.