Bill Barrett and Fifth Creek Energy Company have signed a merger agreement, in a deal valued at around $649m.

The strategic business combination will result in the creation of an exploitation and production company, New BBG, exclusively focused on oil-weighted rural areas in the Denver-Julesburg (DJ) Basin.

Through the transaction, the companies expect that the newly formed combined entity will have increased size, scale, and balance sheet flexibility.

The combination will enable Bill Barrett to develop a combined acreage position of around 151,100 net acres and an inventory of 2,865 future drilling locations, a majority of which have the potential for extended reach lateral (XRL) development.

Bill Barrett CEO and president Scot Woodall said: “We have been seeking opportunities to expand our core DJ Basin asset base with the right acquisition to ensure the best value creation opportunity for our stockholders.

“We have been seeking opportunities to expand our core DJ Basin asset base with the right acquisition to ensure the best value creation opportunity for our stockholders.”

“This presents us with a unique opportunity to add a large, undeveloped acreage position at an attractive cost with the potential for decades of high-return drilling locations located in a rural area that is highly complementary to our legacy position.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The transaction creates a compelling long-term growth platform that will allow us to deliver strong company-wide margins as we maximise capital efficiency and concentrate on the highest return project areas.”

Under the transaction, Bill Barrett’s stockholders will exchange their common stock for New BBG common stock on a 1-for-1 basis, while the current sole owner of Fifth Creek will receive 100 million shares of the new entity’s common stock.

The proposed acquisition had combined pro forma proved reserves of 168 million barrels of oil equivalent as of December 31 last year.

It allows Bill Barrett an additional 81,000 net acres and around 2,900boed of production in the Hereford Field area of rural northern Weld County, Colorado.

Subject to certain customary conditions, including approval of the company’s stockholders, the transaction is scheduled to close late in the first quarter or early in the second quarter of next year.