Bill Barrett Corp. (BBG) said Sept. 28 it entered into a definitive agreement to sell certain noncore Uinta Basin properties to an undisclosed buyer for about $27 million.

The Denver company also announced that its semi-annual borrowing base review has been completed with the bank group reaffirming the $375 million borrowing base related to its revolving credit facility maturing in April 2020.

The credit facility has $375 million of commitments and there are currently no borrowings under the credit facility.

It is now anticipated that 2015 capex will be about $315- to $325 million. This is below the low-end of the previous guidance range of $320- to $350 million.

The company said the decrease in its capex is a result of reduced drilling times for multi-well extended reach lateral (XRL) wells in the Northeast Wattenberg area in the Denver-Julesburg (D-J) Basin.

The company will decrease its operated rig count in the Wattenberg to one rig from two rigs after completing its current drilling operations on the XRL pad, the release said.

Uinta Sale

The Uinta sale includes 17,632 net acres. The properties produced about 470 barrels of oil equivalent per day (boe/d) during August and had estimated proved reserves of 11 MMboe (9% proved developed) as of year-end 2014.

The company said, based on its internal estimates, the sale price amounts to over ten times estimated 2016 operating cash flow (excluding general and administrative expense) based on current strip pricing.

The transaction is expected to close on or before Nov. 30, with an effective date of Sept. 1, and is subject to customary closing conditions and post-closing purchase price adjustments.

The sale of the properties will not result in a reduction of the company's borrowing base related to its revolving credit facility, the release said.