Mr. Heinemann continued, "The execution of this capital program is the next step in Berry's growth plan, following our acquisition and appraisal of areas with significant development inventory. We have several key projects in this budget which provide us the ability to meet our reserve and production targets. In the gas-rich Piceance basin we expect to run four drilling rigs in 2007 to develop the Williams Fork member of the Mesaverde in the Grand Valley field. In California, the first phase of the full-scale diatomite development will concentrate on the central fairway, and in Utah, we will focus on the appraisal of Lake Canyon and Ashley Forest areas in the Uinta basin. Our projected significant reserve additions in 2007 demonstrate the impact of our Piceance acquisitions, the potential of our diatomite asset and ongoing development opportunities in our other core areas.
"Of the $267 million of development capital, we expect to spend $176 million (66%) and drill 300 wells in the Rockies and spend $91 million (34%) and drill 190 wells in California. We anticipate that our Piceance development will utilize two-thirds of our Rockies capital and our diatomite project will utilize just over half of our California capital. We have the rigs, equipment and services contracted or available to perform the work and expect our highest activity level in the second quarter following the winter season. Our 2007 plans are based on commodity prices consistent their level in 2006."
Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with headquarters in Bakersfield, California.
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