Berry Petroleum's 2005 Earnings Climb 62%

Berry Petroleum Company (NYSE: BRY) earned $30.4 million, or $1.35 per diluted share, in the fourth quarter of 2005, which was 20% higher than the $25.3 million, or $1.11 per diluted share, the Company achieved in the fourth quarter of 2004. For 2005, the Company achieved record net income of $112.4 million, or $5.00 per diluted share, an increase of 62% compared to 2004 net income of $69.2 million, or $3.08 per diluted share, according to Robert F. Heinemann, president and chief executive officer.

Berry continued its transformation of diversifying its resource base in 2005 by adding a new core natural gas operating area and through solid execution of its active drilling program. The Company's activities and strong commodity pricing generated powerful results with the following ten records set in 2005:

Average production:         23,015 BOE per day  12% increase over 2004
Revenues:                  $407 million         48% increase over 2004
Cash flow from operations: $188 million         50% increase over 2004
Net income:                $112 million         62% increase over 2004
Capital expenditures:      $131 million         82% increase over 2004
Acquisitions:              $112 million         versus $3 million 2004
Reserve additions:         24.9 million BOE    236% increase over 2004
Price realization:         $41.62/BOE           37% increase over 2004
Dividend distributions:    $13.2 million        16% increase over 2004
Return on capital employed: 33%                     versus 26% in 2004

Mr. Heinemann commented, "The story behind the revenue, cash flow and earnings records in 2005 was our ability to increase production by 12% to a record 23,015 BOE per day (or 8.4 million BOE for the year) and realization of excellent commodity prices, achieving $41.62 per BOE, up 37% from the average BOE realized price in 2004 of $30.32. Our overall 2005 performance benefited from accelerated execution of our drilling programs, and the acquisition and successful integration of our Colorado Niobrara gas assets acquired in the first quarter of 2005. In 2005, we incurred $243 million in total capital expenditures, $119 million in development and exploration, $112 million in acquisitions, and $12 million in the purchase of rigs and other assets.

"Our focus on capital efficiency generated a stellar return on capital of 33% for 2005. We added approximately 25 million BOE in reserves for a reserve replacement rate of 296%. We had an extremely active and well-coordinated year in drilling and field operations in which we drilled 188 new wells and 140 well workovers with only 6 dry holes. We accomplished this while maintaining an excellent safety record, and on February 5, 2006, we achieved over 1,000,000 man hours of operations without a lost-time incident. This major milestone was accomplished over a three-year period of time.

"In 2005, we added the eastern Colorado Niobrara assets as a new core area and expanded this acreage position by adding another 434,000 gross acres (191,000 net) in the Tri-State area (Colorado, Kansas and Nebraska) to our prospective inventory, and we added 186,000 gross acres (46,000 net) in the North Dakota Bakken light oil play. In 2005, we focused our exploration and appraisal activities on three potentially very significant areas or projects. These were:

    1) Lake Canyon -- Green River Formation. We drilled two 
       exploratory wells about three miles west of our producing 
       Brundage Canyon property into our 169,000 untested acreage 
       block. Both wells discovered hydrocarbons, and we announced 
       initial results in January of 2006. These wells indicate that 
       the Green River Formation continues to be productive to the 
       west of Brundage Canyon. We are adding a gas pipeline to the 
       area to produce the associated gas, and are proceeding with the
       next four wells. We are preparing for a 30-well program if 
       results from these four wells are satisfactory.

    2) Coyote Flats. We continue to drill our obligation wells to earn
       our 50% WI in the 69,000 gross acres. We have drilled an offset
       well to the discovery well and a second Ferron well about three
       miles south of the discovery well. We are testing both wells 
       and are pleased with the early results. We are adding pipeline 
       access to achieve gas sales in mid-summer.

    3) Diatomite. We are seeing encouraging results with production
       nearing 300 barrels per day. We expanded our initial pilot 
       program by drilling another 25 wells (15 producers) in the 
       fourth quarter of 2005. While this activity reduced our 
       production from the diatomite in the fourth quarter, it sets 
       the stage for pressure build-up and increased production in the
       first half of 2006. Upon satisfactory results, we are ready to 
       proceed with another 50 well program later in 2006."

Mr. Heinemann continued, "We will continue to actively explore and appraise our large prospective acreage positions in a decisive manner. With these early successes, we are very focused on an efficient execution of our record $190 million capital program for 2006. Our new production target for 2006 is 25,800 BOE per day, which is another 12% increase in production over 2005, and upon achievement, will be our fourth consecutive year of double-digit production growth. This target includes our announced Piceance Basin acquisition which is scheduled to close by March 1, 2006."

Oil and Natural Gas Production & Pricing

    Annual Production            2005    %    2004    %    2003    %
                                ------- ---- ------- ---- ------- ----

Oil and Gas
Heavy Oil Production (Bbl/D)    16,063   70  15,901   77  15,477   94
Light Oil Production (Bbl/D)     3,336   14   3,345   16     489    3
                                ------- ---- ------- ---- ------- ----
Total Oil Production (Bbl/D)    19,399   84  19,246   93  15,966   97
Natural Gas Production (Mcf/D)  21,696   16   7,752    7   3,499    3
                                ------- ---- ------- ---- ------- ----
Total (BOE/D)                   23,015  100  20,537  100  16,549  100
Percentage increase from prior
 year                               12%          24%          15%

For the full-year of 2005, California production averaged 16,156 BOE per day (70%), while the Rockies assets contributed 5,259 BOE per day (23%), and the Mid-Continent assets contributed 1,600 BOE per day (7%) of the Company's total 2005 production.

The average realized sales price net of hedging for the full-year 2005 was $41.62 per BOE, up 37% over the $30.32 per BOE received in the 2004 period.

   Fourth Quarter Production    Q4 2005  %   Q4 2004  %   Q4 2003  %
                                ------- ---- ------- ---- ------- ----

Oil and Gas
Heavy Oil Production (Bbl/D)    15,997   68  16,174   76  16,088   87
Light Oil Production (Bbl/D)     3,438   14   3,722   17   1,582    9
                                ------- ---- ------- ---- ------- ----
Total Oil Production (Bbl/D)    19,435   82  19,896   93  17,670   96
Natural Gas Production (Mcf/D)  25,428   18   9,084    7   5,280    4
                                ------- ---- ------- ---- ------- ----
Total (BOE/D)                   23,673  100  21,410  100  18,550  100
Percentage increase from prior
 quarter                            11%          15%          21%

For the fourth quarter of 2005, California production averaged 16,080 BOE per day (68%), while the Rockies assets contributed 5,605 BOE per day (24%), and the Mid-Continent assets contributed 1,988 BOE per day (8%) of the Company's total fourth quarter production.

The average realized sales price after hedging for the fourth quarter of 2005 was $44.90 per BOE, a 30% gain over the $34.62 per BOE received in the same 2004 period.

Ralph J. Goehring, executive vice president and chief financial officer, stated, "Net cash provided by operating activities increased to a record $65.5 million during the fourth quarter, up 42% from $46.1 million during the prior year's fourth quarter. Net cash provided by operating activities increased to a record $188 million during the full-year 2005, up 50% from $125 million in 2004. We are well positioned to continue our growth story as we have significant financial capacity to execute value-adding acquisitions that meet our strategy and will remain disciplined in our capital expenditures and operational focus. We are off to a good start as we add another major core area, the Piceance Basin (pending closing), to our growing list of operated sizable acreage positions. We expect 2006 to be another exciting and rewarding year for Berry and our shareholders."


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