Oil and gas producer Bill Barrett Corp. (BBG), Thursday revealed operating results for year-end 2009 indicating an 18% growth in proved reserves and 16% growth in production. The company also provided its operating guidance for 2010, indicating higher production during the year.
The Denver, Colorado-based company's estimated proven reserves for year-end 2009 of 964.8 Bcfe included 95% natural gas and 5% oil, with 50% developed and 50% undeveloped. Reserve replacement ratio, the rate at which production was replaced by new oil discoveries, for 2009 was 264%.
The present value of proven reserves was estimated at $685 million, before the effect of income taxes.
Estimated production for 2009 was 89.7 Bcfe and comprised 95% natural gas and 5% oil. Production from Piceance basin and Uinta basin are expected to be 36.5 Bcfe and 32.2 Bcfe, respectively. Powder River-CBM is expected to produce 32.2 Bcfe of oil and gas and Wind River is expected to produce 8.4 Bcfe. Production from other basins is expected to be 0.5 Bcfe.
Estimated fourth quarter 2009 production was 22.8 Bcfe, up 11% from 20.6 Bcfe in the fourth quarter 2008.
Year-end capital expenditures, including acquisitions, were $406.4 million, with Piceance basin expenditures of $255 million and Uinta expenditures of $94 million. Capital expenditures from Powder River-CBM, Wind River and other basins are expected to be $14 million, $5 million and $38 million, respectively.
In addition, the company expects to record impairment, dry hole and abandonment expenses of about $23 million, of which about $2 million relates to dry holes, as a result of sub-economic performing wells in the Yellow Jacket prospect that were completed using a less optimal fracture technology.
Looking forward, the company expects $400 to $425 million in capital expenditures related to exploration and development to drill approximately 220 wells in 2010.
Capital expenditures are expected to be allocated about 95% for development and 5% for delineation and exploration.
Production for 2010 is expected to range from 97 to 100 Bcfe, an 8% to 12% increase over 2009. Lease operating costs are expected to range from $0.57 to $0.61 per Mcfe and gathering, processing & transportation costs are expected in the range of $0.75 to $0.80 per Mcfe.
The company is scheduled to release its fourth quarter results on February 23.
BBG is currently trading at $33.4001, up 0.5301 or 1.61%, on a volume of 0.56 million shares on the NYSE.
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