More Capex Budget Increases: BRY Increases 39%
"Berry Petroleum Company Increases Its 2000 Capital Budget to $21.5 Million"
Monday April 3, 8:06 am Eastern Time
Company Press Release
TAFT, Calif.--(BUSINESS WIRE)--April 3, 2000--Berry Petroleum Company (NYSE:BRY - news) announced that it has increased its 2000 capital budget by approximately $6 million to a total of $21.5 million to capitalize on the favorable world and local crude oil market. The incremental planned expenditures will be focused on development activities which provide excellent rates of return on capital invested and short payout periods.
This expanded capital budget includes the drilling of 88 new development wells, an increase of 31 wells, and 93 remedial activities, another increase of 31 well activities, which include deepenings, liner replacements, redrills, etc. The total of 181 well activities for the year 2000 will be up over 50% from the prior 2000 budget. Planned expenditures also include the expansion of conventional steam generation capacity to provide for further development and accelerated production of existing reserves.
The new 2000 capital budget provides for activities on all four of the Company's core operating areas, but is concentrated on its South Midway-Sunset and Placerita properties. Sixteen of the new wells will be horizontal wells and another fourteen are defined as exploitation wells designed to identify additional future development projects. In addition to the increased capital budget, the Company is increasing its operating expense budget by an additional $2 million to provide for increased steaming and well workovers.
To accomplish these goals, the Company will operate two drilling rigs for most of the year, three workover rigs for remedial well activity, and engage additional technical support. This increased oilfield activity should also benefit the local and regional economies. The 2000 budget is more than double the 1999 expenditure level of $9.1 million and with success in implementation, coupled with a modest budget in 2001, the Company expects to average over 17,000 net barrels per day in 2001.
Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company which produces over 14,500 bbls of heavy crude oil per day, and has headquarters in Taft.
Forward Looking Statements
``Safe Harbor' statement under the Private Securities Litigation Reform Act 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, competition, environmental risks, litigation uncertainties, drilling, development and operating risks, uncertainties about the estimates of reserves, Y2k non-compliance by key vendors, customers, the Company, etc. and government regulation.
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Contact:
Berry Petroleum Company, Taft
Jerry V. Hoffman or Ralph J. Goehring, 661/769-8811
Fax: 661/769-8960
E-mail: ir@bry.com
Internet: www.bry.com
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