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Earnings Analysis: 
Bill Barrett Second Quarter Earnings Call
Author: Albena Toncheva
123jump.com
Last Update: 5:01 AM EDT September 10 2007


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Bill Barrett, the leading oil and gas company, reported revenue of $101 million as against the analysts’ expectation of $94 million. The production during the Q2 increased 24% to 15.1 Bcfe, with the continued growth of West Tavaputs and Piceance. During the quarter, the company sold its Williston Basin properties and realized an $11 million pre-tax gain. For fiscal 2007, Bill Barrett expects annual growth rate of 17% to 23% and has revised the production forecast to 61 to 64 Bcf for the year.

 
Michael Scialla (A.G. Edwards): On Circus, given what you''ve seen so far, have you been adding any acreage along that trend anywhere?

Fred Barrett: Yes, we''re primarily focused in what we call the Circus area, but it''s a fairly substantial area in terms of our acreage position. We own well over 300,000 gross acres in this region, and we are doing some clean-up work on a number of leases. There are certain areas we know that we want to be in.

In the Circus area, our strategy there was in addition to the 3D seismic that we''ve shot in there and which by the way we continue to shoot 3D in there. We''ve got 70 some square miles this year we''re going to shoot. Our strategy was to provide a large enough East/West look at the play as well as the North/South look at the play and when you look at the analog areas of Wyoming Overthrust and the Canadian Overthrust, it took a number of wells before they found the big structures. But we do keep our eyes open up and down along thrust belt not only in Montana but down into the Wyoming area but we don''t have any specific new plays outside or along the same trend to the North or South of Circus at this point in time.
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