By OGJ editors
HOUSTON, July 13 -- Bill Barrett Corp. will pay $150 million to acquire Denver-Julesburg basin properties that target Niobrara oil, bringing its Niobrara position in the basin to more than 67,000 net acres.
The properties to be acquired from an affiliate of Texas American Resources Co., Austin, are at Hereford, Colo., near the Wyoming state line and near giant Wattenberg field. A number of successful Niobrara wells have been drilled nearby.
Bill Barrett Corp. estimated that it may spend as much as $35 million on the properties in 2011 after closing, expected in the current quarter.
The properties include a preliminary estimate of 7 million bbl of oil equivalent net proved reserves, 650 b/d of oil equivalent net production, and 28,000 net acres of mineral leasehold, primarily on fee lands. They produce mainly from the Codell and Niobrara formations.
Bill Barrett Corp. said it has been assembling a DJ basin Niobrara oil position for 2 years. The acquisition gives it a “sizable DJ play that includes exploitation opportunity within the existing Wattenberg development area and a sizable exploration acreage position, where we intend to test the Niobrara through horizontal drilling this year.”