Berry Petroleum Company Acquires Entry Position in the Powder River Basin.Business Editors TAFT, Calif.--(BUSINESS WIRE)--April 18, 2001 Berry Petroleum Co. (NYSE NYSE See: New York Stock Exchange :BRY) today announced that it has acquired a 15.833 percent non-operated working interest in the Fort Union coalbed methane leases in the South Joe Creek Field, Wyoming for $2.1 million. The effective date of the transaction was April 1, 2001. The properties are located in the coalbed methane rich fairway of the Powder River Basin The Powder River Basin is a region in southeast Montana and northeast Wyoming about 120 miles east to west and 200 miles north to south known for its coal deposits. It is both a topographic drainage and geologic structural basin. and are comprised of federal, state and fee leases totaling approximately 5,800 acres. The company estimates the proved reserves, net to its interest, to be approximately 2.2 Bcf. Currently 18 wells, which are in the early stages of the de-watering production phase, are producing 1.8 Mmcf of gas per day (230 Mcf per day to Berry's net revenue interest). Full development of the property will include drilling and completing 54 additional coalbed methane wells, which are anticipated to be drilled this year. Jerry Hoffman, chairman, president and chief executive officer, stated: "This entry acquisition enhances Berry's existing portfolio of high-quality heavy oil properties with long-life natural gas reserves. A new growth area for Berry is established in the gas rich Rocky Mountain region The Rocky Mountain Region is a floristic region within the Holarctic Kingdom in western North America (Canada and the United States) delineated by Armen Takhtajan and Robert F. Thorne. with exposure to a multitude of growth opportunities. "This strategic acquisition is an excellent step toward offsetting the cost of natural gas to fuel our cogeneration facilities with cash flow derived from the production of coalbed methane gas." Berry Petroleum Co. is a publicly traded independent oil and gas production and exploitation company with headquarters in Taft, Calif. "Safe harbor 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": With the exception of historical information, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the timing and extent of changes in commodity prices for oil, gas and electricity, So Cal border pricing for natural gas, pipeline capacity for natural gas to and within California, the non-existence of a liquid marketplace for electricity purchases and sales within California, competition, environmental risks, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. uncertainties, drilling, development and operating risks, uncertainties about the estimates of reserves, the prices of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , the availability of drilling rigs and other support services, legislative, California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, , Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. , and/or judicial decisions and other government regulation. |
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