Berry Petroleum Agrees to Sell East Texas Midstream Assets.Increases 2009 Capital Budget to $132 million DENVER -- Berry Petroleum Company (NYSE NYSE See: New York Stock Exchange :BRY) ("Company") today announced that it has entered into an agreement to sell its East Texas gas gathering system to a private party for $18.5 million in cash. The Company will enter into a concurrent long-term gas gathering agreement for its East Texas production. The transaction is expected to close in June 2009. The completion of the transaction is subject to certain conditions and there is no assurance that all such conditions will be satisfied. In addition, the Company announced that its board of directors has authorized a $32 million increase to its 2009 capital budget now totaling approximately $132 million. Mr. Heinemann, president and chief executive officer said, "Our significantly improved financial position has enabled us to allocate more capital to our highest rate of return projects. Proceeds from the sale of the East Texas midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. asset will partially offset the increase in our capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . We continue to project that debt repayment for the balance of the year will be approximately $60 million." About Berry Petroleum Company Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with operations in California, Utah, Colorado and Texas. The Company uses its web site as a channel of distribution of material company information. Financial and other material information regarding the Company is routinely posted on and accessible at http://www.bry.com/index.php?page=investor. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. under the "Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995" Any statements in this news release that are not historical facts are forward-looking statements that involve risks and uncertainties. Words such as "expected," "project," and forms of those words and others indicate forward-looking statements. Important factors which could affect actual results are discussed in PART 1, Item 1A. Risk Factors of Berry's 2008 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on February 25, 2009 under the heading "Other Factors Affecting the Company's Business and Financial Results," and updated in the Company's Form 10-Q Form 10-Q See 10-Q. filings subsequent to that date. |
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