It's always a bit risky to invest in a young oil or natural gas company -- exploration costs can be quite high, for uncertain reward -- but Bill Barrett Corporation (NYSE: BBG) is one you can trust if you buy at the right price.

The company is engaged in drilling in the Rockies, widely seen as one of the areas with the greatest potential for substantial natural gas resources. In addition to its potentially lucrative natural gas supplies, the Rockies are also in the United States, which limits some of the risk for a company like BBG.

To be sure, there are always risks. Beyond the uncertainty of exploration, natural gas companies always have to contend with environmental regulation, and the price can also vary quite significantly, which could greatly dampen profits. But these are industry-wide concerns, and if you're comfortable investing in this industry, BBG could be a good bet for you. A report this week by Bank of Montréal's analyst team raised its 2008 production estimate by 14%, and came up with a new target price of $46. If this report is right, you could realize a gain of about 30%.

This is only a stock for investors who can handle some risk for high potential gains -- if you're comfortable getting into this business, I think a young company like BBG could repay your confidence quite handsomely.

Type of Stock: A relatively young natural gas company doing most of its exploration in the Rockies. Basically, this is a way to bet on natural gas.

Price Target: BBG has lost a bit of ground and is currently trading in the mid $30s, a few dollars off its 52-week high. I'd feel more comfortable in the low $30s on this one. The stock tends to have periodic dips, so you might wait for one of those and grab it if you can handle the risk.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.