Bill Barrett to pick up DJ basin development program

Bill Barrett Corp., Denver, will resume its extended reach lateral (XRL) development program in the Denver-Julesburg basin during the third quarter.

The firm expects to spud as many as 12 gross XRL wells before yearend that will then be placed on initial production in first-quarter 2017. Bill Barrett’s capital expenditures for 2016 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 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,” commented Scot Woodall, Bill Barrett chief executive officer.

The firm in the DJ basin during the second quarter produced 14,176 boe/d, up 21% from its first-quarter average. The increase is attributed to the startup of production from a 16-well drilling and spacing unit, which included 15 XRL wells in Section 5-62-22 of northeast Wattenberg, which initiated production earlier than forecast.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...