The Colorado Oil and Gas Conservation Commission has grantedBarrett Resources’ proposal to drill one well per 20 acres withinthe company’s 9,000 acre Rulison, Parachute, and Grand Valleyfields located in the Piceance Basin of western Colorado. With thisruling, Denver-based Barrett expects to add 143 Bcf of proved gasreserves from the allotted 134 well sites by the end of 2000.

The approval sets the stage to extend the Piceance drillinginventory to over five years with a continuous four- rig drillingsystem. The commission’s approval follows a similar grant in 1998which opened 4,000 acres in the Piceance to the one well per 20acres program. The independent producer’s proved gas reserves inthe Piceance Basin as of Dec. 31, 1999 were 461 Bcf.

“Barrett has achieved exceptional success in the PiceanceBasin,” said Joseph N. Jaggers, president of Barrett. “Productionlevels continue to exceed our original forecast for the year.Development on 20-acre well density will allow Barrett to improvereserve recovery and sustain low risk production growth.”

The commission’s ruling did impose certain requirements on theproducer. The company must use directional drilling from 40-acresurface locations for 33 of the 134 wells, additional sitereclamation and advance notice on drilling. Barrett expects theseconditions to add up to $140,000 (15%) to the drilling andcompletion costs on each of the 33 wells.

The company’s Piceance gas production has increased 17% sincethe beginning of 2000, setting a record net level of 105 MMcf/d.Barrett attributes the rise to its continuous four rig drillingprogram, more efficient drilling techniques and increasedcompression on the gathering system. As a result, the company saidit will break this year’s expectations by 21 wells, drilling atotal of 88 wells in 2000.

“Our exploration team also continues to generate qualityprospects in the Piceance Basin, such as the Grand Hogbackprospect, which will be tested in 2001. The Piceance Basin is acornerstone of the Company’s natural gas growth and demonstratesthe effectiveness of the Company’s Rocky Mountain strategy.”

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.