Bill Barrett Corp. of Denver set a production record in the first quarter, producing 13.1 Bcfe (146 MMcfe/d average). This is a 55% increase from the first quarter of 2005 and a 10% increase from last year’s fourth quarter. The vast majority of Barrett’s production is gas.

Including the effects of hedging, the company’s average realized price was $7.42/Mcfe, up from $5.98/Mcfe in the first quarter of 2005.

“We are extremely pleased with our execution in early 2006,” said CEO Fred Barrett. “We had strong production growth, particularly in the Piceance and West Tavaputs areas. We had another exploration success in Lake Canyon. And we closed an important strategic acquisition that enhances the value of our Powder River Basin properties. Our well performance in the Piceance and West Tavaputs continues to improve, and we have considerably increased our 2006 production guidance.”

Barrett’s quarterly net income was up sharply to $22.1 million from $3.1 million in the first quarter of 2005. Earnings per share were 50 cents, up from 7 cents in the first quarter of 2005.

Barrett closed on its acquisition of CH4 Corp. Monday. It acquired the company for about $82 million, including $3 million of associated working capital. The acquisition was funded with borrowings under Barrett’s revolving line of credit. CH4 operates and has leasehold in the Big George coalbed methane play of the Powder River Basin.

“Furthermore,” Barrett said in the company’s earnings news release, “we are encouraged by receiving unprecedented approval to drill eight wells in the winter months in West Tavaputs and currently have two shallow and one deep rig drilling in the area.”

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