Bill Barrett Corp. won approval from the U.S. Bureau of Land Management for exploration of natural gas in the West Tavaputs Plateau in Utah, the company said today.
Barrett rose as much as 7.9 percent in New York trading, the most since August 2009. The gas field holds the equivalent of about 324 billion cubic feet of proved and 1.3 trillion cubic feet equivalent of proved, probable and possible natural gas reserves in Utah, the Denver-based company said in a statement.
The U.S. decision begins a 30-day period during which appeals can be filed, and the timing of drilling permits depends on the nature of any appeals, the company said.
“This is an important asset in our portfolio,” Chief Executive Officer Fred Barrett said in the statement.
The company agreed not to build new well pads in the Jack and Desolation Canyon Wilderness Study Area and will minimize development in areas with wilderness characteristics, the Bureau of Land Management said in a posting in the Federal Register.
Bill Barrett rose $1.86, or 5.8 percent, to $33.97 at 2:27 p.m. in New York Stock Exchange composite trading, after touching $34.63.