By OGJ editors
HOUSTON, Mar. 10 -- Berry Petroleum Co. has increased its capital budget for 2006 by $18 million over last year to $208 million.
Recently, the Bakersfield, Calif.-based independent completed the acquisition of a 50% working interest in natural gas assets in the Grand Valley field in the Piceance basin of western Colorado for about $159 million. Berry will operate and own a 50% working interest in 6,314 gross acres targeting gas in the Williams Fork section of the Mesaverde formation.
The company's increased budget will accelerate the development of this resource, it said. Seven wells currently are awaiting completion, which is expected by the end of March.
Current daily production from these assets, net to Berry's interest, is 1 MMcfd from three producing wells. The company internally estimates 330 bcf of proved and probable reserves, none of which are included in Berry's 2005 yearend proved reserves of 126 million boe.
With this acquisition, the company's current estimate of its total proved reserves is more than 130 million boe.
Berry will ramp up drilling in the area to four rigs by yearend, the company said, with additional drilling rigs to be added throughout 2007. "With over 600 locations identified, we anticipate a very predictable drilling program on these lands for many years, adding both significant production and reserves at competitive metrics," noted Logan Magruder, executive vice-president, Rockies and Midcontinent regions.
