Bill Barrett Corp. (BBG) said Sept. 28 it entered into a definitive agreement to sell certain noncore Uinta Basin properties to an undisclosed buyer for about $27 million.
The Denver company also announced that its semi-annual borrowing base review has been completed with the bank group reaffirming the $375 million borrowing base related to its revolving credit facility maturing in April 2020.
The credit facility has $375 million of commitments and there are currently no borrowings under the credit facility.
It is now anticipated that 2015 capex will be about $315- to $325 million. This is below the low-end of the previous guidance range of $320- to $350 million.
The company said the decrease in its capex is a result of reduced drilling times for multi-well extended reach lateral (XRL) wells in the Northeast Wattenberg area in the Denver-Julesburg (D-J) Basin.
The company will decrease its operated rig count in the Wattenberg to one rig from two rigs after completing its current drilling operations on the XRL pad, the release said.
Uinta Sale
The Uinta sale includes 17,632 net acres. The properties produced about 470 barrels of oil equivalent per day (boe/d) during August and had estimated proved reserves of 11 MMboe (9% proved developed) as of year-end 2014.
The company said, based on its internal estimates, the sale price amounts to over ten times estimated 2016 operating cash flow (excluding general and administrative expense) based on current strip pricing.
The transaction is expected to close on or before Nov. 30, with an effective date of Sept. 1, and is subject to customary closing conditions and post-closing purchase price adjustments.
The sale of the properties will not result in a reduction of the company's borrowing base related to its revolving credit facility, the release said.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
What's Affecting Oil Prices This Week? (Feb. 5, 2024)
2024-02-05 - Stratas Advisors says the U.S.’ response (so far) to the recent attack on U.S. troops has been measured without direct confrontation of Iran, which reduces the possibility of oil flows being disrupted.