Denver E&P company Bill Barrett Corp. (NYSE: BBG) has received drilling permits to continue activity at West Tavaputs, a key development asset located in the Uinta Basin, Utah. The 30-day appeals period in connection with the Record of Decision on the Environmental Impact Statement for full-field development at West Tavaputs has concluded, and the Bureau of Land Management (BLM) has begun issuing drilling permits that will enable the company to position two drilling rigs in the area by year-end.
As of year-end 2009, the company's West Tavaputs project area had 324 billion cubic feet equivalent (Bcfe) of proved and 1.3 trillion cubic feet equivalent (Tcfe) of proved, probable and possible natural gas reserves on more than 40,000 acres in the Uinta Basin, Utah.
Bill Barrett chairman, president and chief executive Fred Barrett says, "West Tavaputs is a key catalyst for low-cost, visible growth for years to come. This asset represents some of the best economics in our Rockies portfolio, and we believe continuous operations will translate to even better efficiencies and returns. We look forward to this significant resource exposure, while implementing one of the most environmentally protective programs in the Rockies. I reiterate our appreciation to the BLM, the Department of Interior, the State of Utah, and parties representing archeological, wildlife and wilderness interests who have worked in collaboration to make ongoing development of this project possible. As a result, our activity in the area will create more jobs and revenues for the State of Utah at a time when they are needed most."
Chief operating officer Scot Woodall adds, "Incremental capital expenditures at West Tavaputs for 2010 are expected to range between $25 million and $30 million and will include spudding up to 20 wells. By initiating activity this fall, we are well positioned for reserve and production growth from the area in 2011."
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