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January 2, 2013
17:31 EDTBBGBill Barrett closes sale of nat gas assets, updates activity at West Tavaputs
Bill Barrett announced that on December 31, 2012 it closed on its previously announced sale of natural gas assets to an affiliate of Vanguard Natural Resources. The sale included all its Wind River Basin natural gas producing properties, the Powder River Basin coal bed methane assets and a working interest in its Gibson Gulch-Piceance Basin development property. The total value of the transaction of $335M was preliminarily adjusted to the October 1, 2012 effective date and for other customary closing adjustments providing net proceeds to the company of $329M, which includes a $33.5M deposit received in November 2012. Proceeds from the transaction have been applied to pay off the $250M balance on the company's revolving credit facility as of year-end 2012. The remaining proceeds will be applied to the company's 2013 development capital. The company's borrowing base on its revolving credit facility was reduced by $75M to $825M based on preliminary year-end 2012 reserves, which exclude the properties sold to Vanguard. Unrelated to the closing, the company updates the status of repairs at its West Tavaputs natural gas development program following a previously announced fire at the Dry Canyon compressor station. Current net production from the area is approximately 78M cubic feet of natural gas equivalent per day, which is approximately 90% of the pre-fire rate. A bypass pipeline to redirect natural gas to the Interplanetary compressor station was completed and put in service on December 13, 2012. The company expects to complete pipeline repairs to direct additional production to its Sage Brush compressor station, expected to be ready in late January following further testing, which will modestly increase production from the current rate.
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