Berry Petroleum to Acquire Additional Uinta Basin Acreage

Uinta Basin, Utah
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Berry Petroleum announced a Development Agreement with Petro-Canada Resources (USA) Inc., to develop Petro-Canada's Coyote Flats Prospect in the Uinta Basin in northeast Utah. Berry will be the operator and upon completing a defined drilling program, will own 50% of approximately 72,000 undeveloped acres. The Company estimates its total obligation under this agreement to be approximately $10.3 million and will vary based on drilling costs.

Robert Heinemann, president and chief executive officer, said, "We are very pleased to partner with Petro-Canada on this opportunity to develop this acreage. We are buying into one completed well in the Ferron sand that has tested at over one million cubic feet (MMcf) per day of natural gas and is awaiting pipeline hook-up. By the end of December we intend to begin drilling the first of three test wells into the Ferron sand to a depth of approximately 7,500 feet. Additionally, we will drill a six-well Emery coalbed methane (CBM) pilot, which is based on encouraging coal thickness encountered in the drilling of the earlier Ferron well. This coal, found at approximately 4,500 feet, was cored and has potential to be commercially successful. Upon the completion of this portion of the drilling obligation, Berry will earn 50% in the subject property."

Michael Duginski, senior vice president of corporate development, added, "We are pleased that we can add this highly prospective acreage to our growing portfolio of assets in the Rockies. This acreage is only 35 miles southwest of our Brundage Canyon producing asset and will complement our asset base by adding both potential high-volume natural gas producing wells and long-lived gas production through the CBM development. We paid $1.3 million at signing and expect to drill all of our obligation wells in 2005 for around $9 million, which will allow us to earn our interest in the acreage."

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