DENVER, May 2, 2016 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it has
entered into an agreement with an unaffiliated third party to sell
certain non-core assets located in the Uinta Basin for cash
proceeds of approximately $30
million. The transaction is expected to close on or before
June 30, 2016, and is subject to
customary closing conditions. The assets produced approximately
1,000 Boe/d (63% oil) during the first quarter of 2016 and had
estimated proved reserves of 2 million barrels of oil equivalent
(87% proved developed) as of December 31,
2015. Based on the Company's internal estimates, the
expected 2016 operating cash flow from the divested properties will
be less than $2 million based on
current strip pricing.
Chief Executive Officer and President Scot Woodall commented, "The sale of another
portion of our non-core Uinta Basin assets at attractive sale
metrics further streamlines our operational portfolio and improves
operating metrics. Given the current outlook for commodity prices
and a focus on our core DJ Basin assets, we had no development
activity planned for this year. The divestiture will minimally
impact our 2016 production and cash flow, while improving our
operating cost structure due to the higher-cost nature of the
properties. The proceeds from this transaction will be used to
strengthen our balance sheet by adding to our cash
position."
Wells Fargo Securities, LLC advised the Company with respect to
the Uinta Basin divestiture
process.
Forward-Looking Statements
All statements in this press release, other than statements of
historical fact, may be deemed to be 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. Forward-looking statements in this
release relate to, among other things, the closing and anticipated
effects of, and proceeds from, the planned asset
sale.
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. 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