Bill Barrett Corp. reports gains in production from Colorado shale, though revenue off by about half from last year. Photo by Christopher Halloran/Shutterstock
DENVER, Aug. 7 (UPI) -- Colorado energy company Bill Barrett Corp. credited drilling efficiency and targeted spending for the boost in production from the Denver-Julesburg shale basin.
"Our drilling results continue to reflect the quality of our Denver-Julesburg assets and position us to achieve our goals for the remainder of the year, while providing a strong foundation heading into 2016," Chief Executive Officer and President Scot Woodall said in a statement.
Combined with the Uinta Oil basin, the company said net second quarter production of 1.6 million barrels of oil equivalent was 23 percent higher year-on-year. While long-term output from Uinta was down, the company said production from Denver-Julesburg was up 8 percent from the previous quarter and 76 percent from last year.
Bill Barret's production comes as company's working in U.S. shale cut spending on exploration and production because of the low price of crude oil. That trend is reflected in declines in the number of rigs deployed across the country, though the company said it made "significant strides" in drilling efficiency over the year.
Bill Barrett last month said full-year spending in 2015 could reach $350 million, which includes adding a second drilling rig to the Wattenberg area in the Denver-Julesburg basin. While the lag time in deployment means production for the year will increase only slightly, the company by next year expects output from Colorado shale to grow substantially.
In its latest statement, the company said second quarter capital spending was $65.1 million, 19 percent below expectations. Full year spending plans, however, remain unchanged at between $320 million and $350 million. Most of its drilling plans are focused on the Denver-Julesburg basin.
The company reported quarterly revenue of $62.6 million, down more than 50 percent from last year.