Bill Barrett Corporation has closed its previously announced acquisition of the owner and operator of a Uinta Basin oil property and related assets, which the Company has named East Bluebell.

The East Bluebell acquisition includes an estimated 5 million barrels of oil equivalent (MMBoe) net proved reserves, an estimated 25 MMBoe net proved, probable and possible reserves, approximately 750 Boe per day net production, associated gathering and transportation infrastructure and 20,155 net acres of mineral leasehold. The acquired properties currently have 25 producing wells, and the Company has identified more than 200 drilling locations for vertical, oil development wells.

The acquired properties are located approximately 35 miles east-northeast of the Company's Blacktail Ridge-Lake Canyon project and eight miles from the regional office in Roosevelt. The proximity to existing operations is expected to provide drilling and operating efficiencies. Similar to Blacktail Ridge-Lake Canyon, the East Bluebell properties produce from, and are on trend with, the same oil formations that are developed in the Altamont Bluebell region and offer upside potential through additional geologic horizons and horizontal drilling.

The East Bluebell acquisition was completed for approximately $120 million, subject to post-closing adjustments. The Company plans to initiate development of the property in 2011 with a one-rig, ten-well program beginning in July, increasing the number of oil directed rigs in the combined project area from two to three. As a result, the Company is increasing its planned development capital expenditures by up to $25 million for the full year.

Tags: Bill Barrett Corporation