Barrett Resources Corp. announced a purchase and sale agreementto acquire additional working interests in Piceance Basin gasproperties in western Colorado and all the outstanding interest inthe related gas gathering system for $72 million. Although thecompany said multiple sellers were involved, it would not divulgewho those sellers were. Closing on the property purchases isexpected to occur on Dec. 16. Acquisition of the gathering systemis subject to regulatory approval, which is expected in January2000.

Denver-based Barrett estimates the acquired interests includeapproximately 140 Bcf of proved gas reserves, of which 43% areclassified as proved developed. Barrett was already the operator ofall the related operations involved in this deal. The acquisitionof these gas assets will increase Barrett’s working interest in itsPiceance Basin gas properties from 64% to approximately 94% and itsownership in the gathering system to 100%. It will also increaseBarrett’s production by approximately 24 MMcf/d.

“We are the dominant player in the region,” said Larry Busnardo.”This basin is one of our three core areas along with the PowderRiver and the Wind River basins. It was also a foundation fromwhich this company was built.” He added that Barrett has drilledmore than 400 wells in the Piceance Basin in just over 15 years ofoperations in the area.

Barrett continues to pursue acquisition of the remaining 6%working interest in the gas properties. It will finance theacquisition with proceeds from its line of credit, includingamounts from the prior sale of non-strategic assets that wereapplied to reduce the line of credit balance.

“The acquisition of these Piceance Basin and gathering systeminterests is strategic to Barrett’s continued expansion in theRocky Mountains and will allow us to immediately increaseproduction and reserve quantities,” said Peter A. Dea, CEO. “We arecurrently developing these core properties with a four-rig drillingprogram and expect Piceance Basin production to increase throughout2000.”

Barrett Resources is an independent natural gas and oilexploration and production company that is also involved in gasgathering, marketing and trading activities. Barrett’s propertiesare focused primarily in the Rocky Mountain region of Colorado,Wyoming and Utah, the Midcontinent area of Kansas, Oklahoma, NewMexico and Texas, and the Gulf of Mexico region of offshore Texasand Louisiana.

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