Jan. 2, 2013
/PRNewswire/ -- Bill Barrett Corporation (NYSE: BBG) announced today that on
December 31, 2012
it closed on its previously announced sale of natural gas assets to an affiliate of Vanguard Natural Resources, LLC. The sale included all its Wind River Basin natural gas producing properties, the Powder River Basin coal bed methane assets and a working interest in its Gibson Gulch-Piceance Basin development property.
The total value of the transaction of
was preliminarily adjusted to the
October 1, 2012
effective date and for other customary closing adjustments providing net proceeds to the Company of
, which includes a
deposit received in
. Proceeds from the transaction have been applied to pay off the
balance on the Company's revolving credit facility as of year-end 2012. The remaining proceeds will be applied to the Company's 2013 development capital.
The Company's borrowing base on its revolving credit facility was reduced by
based on preliminary year-end 2012 reserves, which exclude the properties sold to Vanguard.
Unrelated to the closing, the Company updates the status of repairs at its West Tavaputs natural gas development program following a previously announced fire at the Dry Canyon compressor station. Current net production from the area is approximately 78 million cubic feet of natural gas equivalent per day, which is approximately 90% of the pre-fire rate. A bypass pipeline to redirect natural gas to the Interplanetary compressor station was completed and put in service on
December 13, 2012
. The Company expects to complete pipeline repairs to direct additional production to its
compressor station, expected to be ready in late January following further testing, which will modestly increase production from the current rate.
This press release contains forward-looking statements, including statements regarding the use of sale proceeds and the timing of repairs at West Tavaputs. These forward-looking statements are based on management's judgment at the time of issuing this press release and include certain risks and uncertainties. Please refer to the Company's Annual Report on Form 10-K for the year-ended
December 31, 2011
filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect forward-looking statements.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in
, explores for and 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
SOURCE Bill Barrett Corporation