Bill Barrett Corp. is stepping up its oil and gas operations in Colorado’s Denver-Julesburg (DJ) Basin, with the Denver-based energy company saying Wednesday it would accelerate its plans to drill new oil and gas wells that have “extended reach lateral” bores of about 9,500 feet.
The plans include adding a second drilling rig to its operations in the basin, and expectations of adding 11 new wells to its 2015 plans. That brings the total new wells Bill Barrett plans to drill this year to between 35 and 40.
The new wells probably won’t move the needle too much on the company’s 2015 production, due to the time needed to ready the wells for production, the company said.
Still, the news stands in contrast to months of announced production and capital spending cutbacks by energy companies amid the ongoing slump in oil prices.
Bill Barrett (NYSE: BBG) said it expects its oil production from the DJ to jump 60 percent in 2015, compared to 2014, and rise another 25 percent in 2016.
As far as spending, Bill Barrett said it now expects to spend between $320 and $350 million in capital expenditures this year.
The company said its spending budget would be supported by cash flow, cash on hand and borrowing against its revolving credit facility as well as selling assets and stock.
The company also said Wednesday it had filed a prospectus with the Securities and Exchange Commission announcing it may sell up to $100 million worth of stock over time via an “at the market” offering as needed.