Bill Barrett Corporation is increasing 2011 production guidance to 106 to 110 billion cubic feet equivalent (Bcfe), representing year-over year growth of 10% to 14%. The Company plans to continue development drilling at its liquids-rich Gibson Gulch program as well as benefit from faster drilling times already realized at West Tavaputs. Natural gas liquids (NGLs) and oil prices have risen 17% and 19%, respectively, since November 2010 when the Company put its initial 2011 development program in place. Based on current commodity futures prices, Gibson Gulch oil production and NGL processing revenues are expected to account for more than 50% of pre-hedge revenue from the area, which provides an estimated return on drilling and completion capital of more than 50%.

The updated 2011 program includes running two rigs in Gibson Gulch from April through year-end and is expected to add approximately 3 Bcfe to 2011 production as well as provide potential for 20%-plus production growth in 2012. As a result, the Company is increasing its capital expenditure guidance for 2011. Further, the additional activity will drive operating efficiencies that are expected to reduce total lease operating expenses and gathering, processing and transportation expenses by $0.03 per Mcfe for 2011. The increase in the Company's 2011 capital budget can be funded with the Company's undrawn revolving line of credit.

Chairman, Chief Executive Officer and President Fred Barrett comments, "In response to today's higher oil and liquids price environment, we believe that maintaining two rigs in our Gibson Gulch program will provide increased value from this lower risk development asset. We will direct a solid portion of our capital in 2011 toward our NGL and oil projects, including our goal to continue to expand our Blacktail Ridge oil program where we have recently added a second rig. Higher price realizations, improved operating efficiencies and strong returns at these plays improve operating cash flow and position us for very strong growth in 2012."

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