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Bill Barrett expands in Piceance basin

Colorado-based Bill Barrett Corporation has bought a 90% working interest, worth $60 million, in about 40,300 undeveloped leasehold acres in Cottonwood Gulch, in the Piceance basin of western Colorado.

The properties are next to the Rulison and Parachute fields, considered to be among the most prolific fields within the Piceance basin.

The leases are on federal lands, which carry a 87.5% net revenue interest, and are 10-year leases that were issued late last year, the company said in a statement.

The company currently produces around 100 million cubic feet equivalent per day net from the Gibson Gulch field in the Piceance basin.

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