Bill Barrett to offload non-core Uinta Basin properties

US-based oil and gas company Bill Barrett has signed an agreement to offload certain non-core Uinta Basin properties in a transaction valued at about $27m.

The company has also completed its semi-annual borrowing base review with the bank group reaffirming the $375m borrowing base related to its revolving credit facility that is set to mature in April 2020.

Expected to close on or before 30 November 2015, the deal with an unnamed buyer is subject to customary closing conditions and post-closing purchase price adjustments.

During August 2015, the properties produced about 470 Boe/d and had estimated proved reserves of 11 million barrels of oil equivalent (MMBoe) as of 31 December 2014.

According to the company, the Uinta Basin properties’ sale will not result in a reduction of its borrowing base related to its revolving credit facility.

For the remainder of the year, the company plans to reduce its operated rig count from two rigs to one rig after concluding current drilling operations on a multi-well extended reach lateral (XRL) pad.

Bill Barrett chief executive officer and president Scot Woodall said: "We are pleased with the support of our lender group and believe that the reaffirmation of our borrowing base in the current commodity price environment is a testament to the high quality nature of our XRL assets.

"In addition, the sale of non-core properties at attractive metrics enhances our already strong liquidity position and further strengthens the balance sheet."

Bill Barrett expects 2015 capital expenditures to be about $315-$325m, which is below the low-end of the previous guidance range of $320-$350m.

"As we look ahead to 2016, we are running a variety of operating plan scenarios and considering a range of commodity price assumptions to determine the appropriate level of capital spending as we look to preserve liquidity given the outlook for commodity prices."

The Uinta Oil Program is Bill Barrett’s core oil development project and is located in northeast Utah in the oil saturated Altamont-Bluebell trend.