Berry Petroleum reports commercial drilling results from its shallow Lake Canyon Prospect in the Uinta Basin of Utah. The Nielsen Marsing and Taylor Herrick wells have tested production rates of 98 barrels of oil equivalent per day (BOE/D) and 163 BOE/D, respectively, from the same Green River formation that is productive immediately east in the Company's Brundage Canyon field. Initial performance from these discovery wells suggests that expected reserves per well are on par with the Brundage Canyon field that is currently being developed on 40 acre spacing. Current production from the Taylor Herrick well is not at full
capacity as additional facilities are in the process of being
installed. Production from the Nielsen Marsing well is selectively
limited to two of five completion intervals within the well and will
be further optimized when natural gas facilities are completed.
The Lake Canyon prospect covers 171,000 gross acres with Berry
owning 56.25% working interest in the shallow zones. Ute Energy
L.L.C., an affiliated company of the Ute Indian Tribe, owns 25% and
Bill Barrett Corporation owns the remaining 18.75%. The shallow zones
are those above the Wasatch which is at approximately 6,500 feet.
Robert Heinemann, president and chief executive officer stated,
"Our exploration efforts are proving successful, and demonstrate
increased inventory in the Uinta Basin where we have the ability to
leverage our existing operations and services. We have three drilling
rigs under contract in the Uinta Basin to achieve our 2006 drilling
activities at Brundage Canyon, Coyote Flats and Lake Canyon. We plan
to drill four additional shallow Lake Canyon wells over the next
several months to further delineate the prospect acreage as we
construct a natural gas pipeline to service the area. We are
initiating plans to accelerate the development of the Lake Canyon
shallow zones in 2006."