By OGJ editors
HOUSTON, June 8 -- Berry Petroleum Co. signed a definitive agreement with EnCana Oil & Gas (USA) Inc. to jointly develop a portion of EnCana's North Parachute Ranch property in the Piceance basin of western Colorado.
Berry will finance the drilling of 90 natural gas wells on EnCana's valley lands and will acquire 4,300 gross acres elsewhere in the North Parachute Ranch property with a working interest of 95% and a net revenue interest of 79%.
Berry Pres. and Chief Executive Robert F. Heinemann estimates the company has proved and probable reserves of nearly 850 bcf in Piceance basin. Productivity of the North Parachute Ranch wells are expected to be comparable with wells in Berry's adjacent Grand Valley project where initial gas production is 1.3-2 MMcfd.