- Bill Barrett prices 21 mln shares of common stock for gross proceeds of $105 mln
- The name Bill Barrett goes back a long way in the state of Colorado and in the industry. It epitomizes the Rocky Mountain region’s successful development of its oil and gas resources for many decades–named for the legendary oilman and genuine wildcatter.
Bill Barrett agrees to a strategic business combination with Fifth Creek Energy Company in a transaction valued at approximately $649 million
Bill Barrett and Fifth Creek will each become subsidiaries of a newly formed holding company, which will become the publicly listed and traded holding company for the combined Bill Barrett and Fifth Creek. In the transaction, Bill Barrett's stockholders will exchange their Bill Barrett common stock for New BBG common stock on a 1-for-1 basis, and Fifth Creek's current sole owner will receive 100 million shares of the New BBG's common stock. Highlights:
- Creates premier DJ Basin focused company with a highly contiguous and complementary acreage position that is conducive to XRL development
- Pro forma proved reserves of 168 million barrels of oil equivalent (MMBoe) (69% oil) as of December 31, 2016 and pro forma third quarter of 2017 production of approximately 24 MBoe/d (64% oil)
- Acquisition adds approximately 81,000 net acres and approximately 2,900 Boe/d (72% oil) of production located in the Hereford Field area of rural northern Weld County, Colorado
- Hereford Field drilling results are among the highest rate oil wells drilled in the DJ Basin with seven wells averaging 1,052 Boe/d (84% oil) (two-stream basis) during their initial thirty days of production
- Initial 2018 plans are to operate three drilling rigs on the combined acreage with anticipated 2018 production of 11-12 MMBoe (~65% oil) and capital expenditures of $500-$600 million
- The transaction is expected to close late in the first quarter or early in the second quarter of 2018.
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