Bill Barrett Offers Operational Update Following Fire at Compressor Station
Bill Barrett Corporation (NYSE: BBG) provides a second update on its West Tavaputs natural gas program following the compressor station fire announced on November 20, 2012. One of the injured employees has been released from the hospital and the second injured employee continues to receive treatment at the University of Utah Hospital Burn Center.
As previously announced, the Dry Canyon compressor station suffered extensive damage, and the facility is insured. The Company continues to produce approximately 33 million cubic feet per day ("MMcf/d") net (49 MMcf/d gross) of natural gas from the area and has initiated efforts to reroute natural gas to its two other compressor stations in the area. A bypass pipeline to reroute natural gas previously sent to the Dry Canyon compressor station to the Company's Interplanetary compressor station is expected to be completed in approximately two weeks, and repairs to a pipeline connection to its Sage Brush compressor station are expected to be completed in approximately five weeks. Incorporating the effect of anticipated changes in line pressures, the Company expects to have 70%-80% of West Tavaputs natural gas production on-line by early January. Fourth quarter production is expected to be reduced by approximately 1.2 Bcf as a result of the reduced compression capacity.
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