By OGJ editors
HOUSTON, June 12 -- Berry Petroleum Co. agreed to acquire interest in East Texas natural gas production from a consortium of private sellers for $620 million.
The transaction involves 4,500 net acres in Limestone and Harrison counties. The acquisition, which includes a $20 million gathering system, marks Berry Petroleum's entry into the East Texas basin.
Berry Petroleum of Bakersfield, Calif., will operate the properties upon closing, expected by July 15. The acquisition will add 32 MMcfd of gas equivalent to Berry's production from 100 producing wells.
Estimated proved reserves associated with the properties are 335 bcf of gas equivalent, with 29% being proved developed reserves.
Berry identified more than 100 drilling locations targeting stacked pay in various productive zones including the Pettit, Travis Peak, Cotton Valley Sands, Cotton Valley Lime, and Bossier sands.