Bill Barrett Corp., Denver, (NYSE: BBG) currently has five rigs drilling in the Rockies, with three in the Piceance Basin in Colorado, one at West Tavaputs and one at Blacktail Ridge, both in Utah.

In Piceance Basin, Bill Barrett’s Gibson Gulch assets have net production of approximately 106 million cubic feet equivalent per day. During 2009, Piceance operations continued to realize improved operating efficiencies, driven primarily by the company's water management system, and improved drilling efficiencies, reflected by an average six days drilling time per well, down from nine days in 2008.

In addition, the company elected to process gas, which added on average $0.32 per million cubic feet equivalent to the realized price company-wide for 2009. In 2010, the company plans to drill 120 to 130 wells in its Gibson Gulch program and realize year-over-year production growth of approximately 30% for the project. At Dec. 31, the company had an approximate 96% working interest in production from 532 gross wells in its Gibson Gulch program.

In the Cottonwood Gulch, the company acquired a 90% working interest in 40,300 undeveloped acres in June 2009. Bill Barrett continues to participate in the mediation process for a lawsuit by environmental groups challenging the leases. The property has a signed record of decision for an environmental impact statement and resource management plan in effect with the Bureau of Land Management. The company agreed to delay oil and gas activities during the mediation process.

In the Uintah Basin in Utah, current net production on Bill Barrett’s West Tavaputs assets is approximately 66 million cubic feet equivalent per day. The company recommenced drilling in December with three wells and plans to drill and complete eight additional wells in the first half of 2010, as well as to complete eight wells from the 2009 program. During 2009, Bill Barrett continued to improve operating costs at West Tavaputs, primarily through the addition of a salt water disposal well that serves to better manage produced water.

Results from 20-acre density wells on the Prickly Pear mesa continued to be positive and the company expects to continue drilling this acreage with the increased density locations. During 2009, the company worked closely with groups representing archeological, wildlife and wilderness interests in regards to the development of West Tavaputs. Bill Barretts believes it is close to resolution in addressing their interests and concerns and looks forward to working together with the Bureau of Land Management in obtaining the final environmental impact statement and record of decision for full-field development of the West Tavaputs project, which is expected in the first half of 2010.

The West Tavaputs program offers growth in the shallow Mesaverde and Wasatch zones as well as upside opportunity through the Mancos shale. At Dec. 31, the company had an approximate 97% working interest in production from 166 gross wells in its West Tavaputs shallow and deep programs.

At the Blacktail Ridge/Lake Canyon assets, current net production is approximately 629 barrels of oil equivalent per day from nine wells. The company drilled one well in 2009 and currently has a rig in the area and plans to participate in up to a 16-well program in 2010. The working interests in this area range from 19% to 100%.

In the company’s coalbed methane assets in the Powder River Basin in Wyoming, current net production is approximately 36 million cubic feet per day. The company plans to participate in a 60 to 70 well program for 2010 beginning in the second half of the year when wildlife stipulations end. The company drilled 40 wells in 2009 and production increased approximately 45% during the year, benefitting from continued dewatering of wells drilled earlier in addition to an extensive workover program. Development of this area requires dewatering of wells, which takes an average of six to 12 months.

At Dec. 31, 2009, the company had an approximate 73% working interest in production from 676 gross coalbed-methane wells.

Current net production from the Wind River Basin in Wyoming is approximately 21 million cubic feet equivalent per day, including the Bullfrog 33-19 well that was recompleted in December.

In the Paradox Basin in Colorado, Bill Barrett’s Yellow Jacket shale gas prospect, the Koskie 13H-27 well (55% working interest) is currently producing 1.1 million cubic feet equivalent per day from the Gothic shale at 400 pounds per square inch tubing pressure, according to Bill Barrett. This well was completed with a substantially larger fracture stimulation than used on earlier well completions, which has produced better results.

The company will continue to monitor data from this well for the next few months and plans to commence its 2010 confirmation program in the second quarter of 2010 with a minimum of one well. This prospect includes approximately 308,600 gross, and 139,750 net, undeveloped acres plus approximately 178,600 gross, and 127,600 net, undeveloped acres in a similar shale gas prospect in the adjacent Green Jacket area.

Bill Barrett chairman and chief executive Fred Barrett says, “We are off to a great start in 2010. Projected production growth of 8% to 12%, combined with hedge positions already in place on approximately 60% of production, is expected to deliver another year of solid cash flow. In addition, we have a very strong balance sheet with current available borrowing capacity of $593 million that positions the company to take advantage of growth opportunities. Our 2010 capital program is focused on development properties yet will be flexible to additional activity if we choose to pursue accelerated growth either through acquisition, exploration success, or if regulatory approvals are received at West Tavaputs.”

Bill Barrett has gas and oil operations in the U.S. Rockies.