Berry Petroleum Company to Acquire Uinta Basin Properties.Business Editors BAKERSFIELD, Calif.--(BUSINESS WIRE)--April 24, 2003 Berry Petroleum Company (NYSE NYSE See: New York Stock Exchange :BRY) today announced that it has entered into a Purchase and Sale Agreement with Williams Production RMT RMT right mentotransverse (position of the fetus). RMT 1. Registered Massage Therapist 2. Renal mesenchymal tumor Company, a unit of Williams (NYSE:WMB WMB Waste Management Board WMB Write Me Back WMB Wheaton Municipal Band (Wheaton, IL) WMB Waukegan Municipal Band (Waukegan, IL) WMB Websphere Message Broker ), to acquire its Brundage Canyon, Utah, properties in the Uinta Basin for approximately $49 million. The Brundage Canyon properties, located in northeastern Utah, consist of approximately 43,500 net acres, and are currently producing approximately 2,200 net BOE per day of light crude oil and natural gas. Berry estimates the proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. at 8.6 million BOE (75% light oil and 25% natural gas). Jerry V. Hoffman, Chairman, President and Chief Executive Officer, stated, "This acquisition will establish an operating position for Berry in the Rockies, which meets one of our 2003 stated goals, and provides the Company with geographic and reserve diversification. The Brundage Canyon property has considerable upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar . Our technical personnel have identified numerous additional drilling locations and we may drill up to 26 wells in 2003, depending upon the timing of our close with Williams. Our objective is to build a sizeable portfolio of assets outside of California and to diversify our heavy oil asset base. We believe the Uinta Basin and the surrounding area offers Berry numerous opportunities to achieve this goal through additional acquisitions and/or through the drill bit." The effective date of the transaction is April 1, 2003. The completion of the transaction is subject to certain conditions and there is no assurance that all such conditions will be satisfied. Closing is expected in the third quarter of 2003. Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with headquarters in Bakersfield, California. "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:" This release may contain descriptions of the Company's expectations regarding future business activities. These forward-looking statements are made in reliance upon safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Accordingly, actual results may differ materially from those contemplated by the forward-looking statements. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion