Berry Petroleum Says Coyote Flats Declared Commerical
Berry Petroleum Company has determined that two appraisal wells drilled on the Coyote Flats prospect (Utah) in late 2005 will be commercial based on recent testing and evaluation of the wells. These two wells located on the eastern portion of the acreage were completed in the Ferron sandstone and have recently tested at flow rates of over 900 thousand cubic feet of gas per day (Mcf/D). These rates and well logs are similar to the 2003 discovery well, the Scofield Thorpe 22-41, which tested at a peak rate of 1.1 million cubic feet of gas per day (MMcf/D). The Company drilled two wells in the first quarter of 2006 which it determined were dry holes; the Scofield Christiansen 8-23 well that tested the acreage west of the Scofield reservoir and the Scofield Thorpe 26-43 well that was the first test of the Emery coals. The Company estimates this charge at approximately $5 million pre-tax, which will be incurred in the first quarter of 2006.
Robert Heinemann, president and chief executive officer, stated,
"We are encouraged that the eastern portion of the acreage continues
to exhibit the same rock characteristics of the discovery well that
was of original interest to us in this prospect. We are planning the
construction of a 13 mile gas pipeline to transport the gas to a sales
point and anticipate sales will begin in the third quarter. To better
delineate the areal extent of the Ferron and to improve our drilling
success rate, we are designing a 15.5 square mile 3D seismic survey of
the most promising acreage. We have now completed five of our
nine-well drilling commitment under our drill-to-earn agreement."
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