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Barrett suspends some gas gathering

Vernal Express

The Bill Barrett Corporation reported in second quarter results, that due to gas gathering constraints in the Blacktail Ridge and Lake Canyon fields, western Uintah Basin, the Company has reached an agreement with the Ute Tribe to suspend certain drilling commitments.

Currently, Bill Barrett operates 16 wells with gross production capacity of 3,200 barrels of oil per day (Bopd) and three wells waiting on gas gathering improvements before completion in the area. Problems with the infrastructure for gas gathering are expected to be resolved around year-end 2009.

"Gas gathering from the oil wells will require additional pipelines from the well head for production," says Jennifer Martin, Bill Barrett spokesperson. "Right now, there simply isn't enough capacity to move the gas."

Bill Barrett further reports that the net production of 22.1 Bcfe of natural gas from all western fields is up 15 percent from the prior year period.

The West Tavaputs project, currently producing around 88 Mmcfe/d, has completed drilling six wells to date. Additionally, the shallow development drilling program with 40-acre well density continues at Peter's Point, along with the 20-acre pilot density program at Prickly Pear.

Second quarter results for Bill Barrett in the Uintah Basin identify the average net production as 87 (Mmcfe/d) compared to 90 (Mmcfe/d) in the first half of the year. Eight wells were spudded in the second quarter, and 16 in the first half of 2009.

This contrasts with Bill Barrett's production numbers of 99 (Mmcfe/d) of natural gas compared to 97 (Mmcfe/d) in the first half in the Piceance Basin. There, 40 wells were spudded in the first half of the year and an additional 24 in the second quarter of 2009.

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