Bill Barrett to Acquire Denver-Julesburg Basin Oil Assets

Bill Barrett Corporation has signed a sale and purchase agreement with a Texas American Resources subsidiary to acquire oil assets in the Denver-Julesburg Basin in Colorado, US, for a total value of $150m.

The assets include the Codell and Niobrara formations, which have preliminary estimates of seven million barrels of oil equivalent net proved reserves, a net production of 650boe per day and a 113km² mineral leasehold.

With this acquisition, the total area acquired by Bill Barrett in the Denver-Julesburg Basin will equate to 271km².

Bill Barrett chairman and CEO Fred Barrett said that the firm has now established a new, sizable play in Denver-Julesburg that includes exploitation opportunities within the existing Wattenberg development area and a sizable exploration acreage position.

The transaction is to be closed in the third quarter of 2011.