Bill Barrett Corporation Announces Expanded DJ Basin Drilling Program

Bill Barrett Corporation (the "Company")

announced today that it is increasing its 2015 capital program to expand and accelerate its extended reach lateral ("XRL") drilling program in the Northeast ("NE") Wattenberg area of the Denver-Julesburg ("DJ") Basin and is establishing an initial 2016 production growth range. The increased activity will include adding a second rig in the NE Wattenberg area early in the third quarter of 2015 that the Company expects will spud an additional 11 gross (8 net) operated XRL wells in the second half of 2015. The Company now anticipates participating in 35-40 gross (28-32 net) operated development wells in the NE Wattenberg area during 2015, most of which are XRL wells. The increased development activity will contribute only slightly to 2015 production due to the timing of completions associated with multi-well pad drilling, but is expected to have a greater impact in 2016 and DJ Basin production is anticipated to grow in excess of 60% and 25% in 2015 and 2016, respectively. Incorporating the higher level of activity, the Company is increasing its 2015 production guidance to 6.0-6.4 MMBoe and raising its capital expenditure guidance to $320-$350 million, which includes capital for the second rig in NE Wattenberg, additional working interests in wells, and a small number of obligation wells related to the retention of leaseholds. The Company is also providing an initial 2016 corporate production growth target of 10%-15% over 2015 based on an indicative 2016 capital spending level of between $225-$275 million, which assumes approximately 40 gross (32 net) operated XRL wells utilizing a two-rig drilling program at current service cost levels and is subject to board approval during the normal budgeting cycle. Chief Executive Officer and President Scot Woodall commented, "We continue gaining operational momentum based on the results of our XRL drilling program. The initial thirty-day production data from our latest completion design is yielding improved early well performance and attractive returns of nearly 40%1 at current commodity prices. With a large and significant opportunity set in front of us, we recognize the benefit of increasing our XRL activity at this time to be better positioned for increased production growth and stronger cash flows in 2016. We expect DJ Basin production to significantly increase as the full benefit of adding the second rig is realized. Our financial position remains strong and is supported by an undrawn revolving credit facility and a significant cash position. We also have over 90% of our 2015 oil and natural gas production and nearly half of 2016 hedged at favorable commodity prices. We will remain capital disciplined and flexible in our capital policies as we utilize a two-rig program to efficiently create value from our DJ Basin acreage position." The capital budget is expected to be funded internally through operating cash flow, cash on hand, borrowings under the Company's revolving credit facility, non-core asset divestitures and sales of common stock from time to time. 1 Calculated for an XRL well utilizing a 9,500' lateral, 55-stage plug-and-perf completion, $6.25 million well cost, flat pricing of $65 NYMEX oil & $3.25 NYMEX gas and incorporates a $9/bbl long-term oil price differential