UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (Date of earliest event reported): December 19, 2005 (December 19,
2005)
BERRY
PETROLEUM COMPANY
(Exact
Name of Registrant as Specified in its Charter)
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DELAWARE
(State
or Other Jurisdiction of
Incorporation
or Organization)
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1-9735
(Commission
File Number)
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77-0079387
(IRS
Employer
Identification
Number)
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5201
TRUXTUN AVE., STE. 300, BAKERSFIELD, CA
(Address
of Principal Executive Offices)
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93309
(Zip
Code)
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Registrant’s
telephone number, including area code: (661)
616-3900
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under
the
Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under
the
Exchange Act (17 CFR 240.13e-4(c))
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Item 7.01
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Regulation
FD Disclosure
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On December
19, 2005, Berry Petroleum Company issued a news release announcing the
Company's
targeted capital expenditure budget of $160 million for 2006.
The
information contained in the press release is incorporated herein by reference
and furnished as Exhibit 99.1.
The
information in this Current Report on Form 8-K and Exhibit 99.1 is
being
furnished and shall not be deemed "filed" for the purposes of Section 18
of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section.
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Item 9.01
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Financial
Statements and Exhibits
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(c)
Exhibits
99.1
News
release dated December 19, 2005.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereto
duly authorized.
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BERRY
PETROLEUM COMPANY
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By:
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/s/
Kenneth A. Olson
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Kenneth
A. Olson
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Corporate
Secretary
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Date:
December 19, 2005
Page
2 of
2
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News
Release
Berry
Petroleum Company
Phone
(661) 616-3900
5201
Truxtun Avenue, Suite
300 E-mail:
ir@bry.com
Bakersfield,
California
93309-0640 Internet:
www.bry.com
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Contacts:
Robert F. Heinemann, President and CEO - - Ralph J. Goehring, Executive
Vice President and CFO
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BERRY
PETROLEUM TARGETS CAPITAL EXPENDITURES OF $160 MILLION IN
2006
Bakersfield,
CA -December 19, 2005
- Berry
Petroleum Company (NYSE:BRY) announced budgeted 2006 capital expenditures of
$160 million, up 15% over the increased 2005 budget of $136 million. These
expenditures will be directed toward exploration opportunities, developing
reserves and increasing oil and gas production. For 2006, Berry plans to invest
approximately $98 million, or 60%, in the Company’s Rockies and Mid-Continent
assets, and $62 million, or 40%, in the Company’s California assets, according
to Robert F. Heinemann, president and chief executive officer.
Mr.
Heinemann added, “This robust capital program allows Berry to continue its
record activity levels by drilling 290 wells and performing 55 well workover
activities in 2006 versus approximately 215 wells and 140 well workovers in
2005. As
a
result, we are targeting production growth of 9% to average approximately 25,000
BOE per day before acquisitions, and
we
plan to actively appraise each significant acreage position we hold for
hydrocarbon potential. The Company expects production to be approximately 70%
heavy oil, 15% light oil and 15% natural gas and anticipates funding its capital
program from internally generated cash flow. Successes may also encourage the
initiation of additional discretionary projects. We have secured the necessary
equipment and are meeting our permit requirements to achieve our 2006
program.”
Appraisal
and Evaluation Activity
California
- Diatomite
In
2006
the Company plans a major commercial test of its diatomite resource by investing
$25 million in a program that will add another 50 wells (31 producers, 19 steam
injectors). The Company is completing its expansion of the initial pilot this
year that will result in 39 wells (21 producers, 18 steam injectors). In
addition to the drilling program, the Company will add significant facilities
including steam generation equipment and will be optimizing the pattern
configuration and layout for the eventual full-field development if
commerciality is determined.
Rockies/Mid-Continent
The
Company plans to spend $23 million to appraise five project areas in this region
in 2006. The five projects are Coyote Flats, Lake Canyon, Big Wash Unit, the
Niobrara gas assets and Bakken.
The
Company has interests in over one million gross acres in the
Rockies/Mid-Continent region and the acreage in the five appraisal projects
accounts for about 80% of that total. These project areas are adjacent to or
near existing Berry oil or natural gas production.
Uinta
Basin Projects
At
Coyote
Flats, Berry will continue to test the viability of the Ferron gas development
and Emery coalbed methane (CBM) pilot with additional drilling. The Company
will
participate in two deep Mesa Verde gas wells and drill four shallow oil wells
to
appraise its Lake Canyon acreage that is immediately adjacent to Brundage
Canyon. Berry will also test the shallow oil and deeper gas potential of its
Big
Wash Unit located about two miles southeast of Brundage Canyon.
Denver-Julesburg
Basin Projects
Berry
will be very active in testing the Niobrara gas potential located in the
tri-state area of Colorado, Kansas and Nebraska. The Company will participate
in
16 exploratory gas wells, drill 11 development wells and acquire additional
3D
seismic. Immediately to the north of its producing assets in Yuma County,
Colorado, Berry will drill 17 exploratory wells based on the acquisition of
new
seismic data covering the Paoli prospect.
Williston
Basin Projects
In
the
North Dakota Bakken play, the Company will drill and/or participate in at least
four horizontal oil wells to appraise the prospective oil
formation.
Development
Activity
Rockies/Mid-Continent
Approximately
$75 million will be invested in this region, with $58 million targeting the
continued development drilling of the Green River formation at Brundage Canyon
to assist full development and will include a 20 acre spacing pilot. In
Northeastern Colorado, $17 million will be invested to acquire additional
seismic data and drill 150 wells to further develop the Niobrara natural gas
from the Company’s producing assets.
California
Berry
will invest $37 million in its heavy oil properties, utilizing horizontal well
and new steam-optimization technologies to maximize recovery from the Company’s
legacy assets. Development activity at the Company’s Poso Creek, Ethel D and
North Midway-Sunset assets will utilize improved application of steam flood
technology to provide production growth.
Berry
Petroleum Company is a publicly traded independent oil and gas production and
exploitation company with its headquarters in Bakersfield,
California.
Safe
harbor under the “Private Securities Litigation Reform Act of
1995”
Any
statements in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties. Words such
as
"plans," "may," "will," "expects," "potential," "target," "test" and
others indicate forward-looking statements, but their absence does not mean
that
a statement is not forward-looking, if the discussion involves strategy,
beliefs, plans, targets, or intentions. Forward-looking statements are made
based on management’s current expectations and beliefs concerning future
developments and their potential effects upon Berry Petroleum Company. Important
factors which could affect actual results are discussed in Part II of Berry’s
Form 10-K filed with the Securities and Exchange Commission, under the heading
"Other Factors Affecting the Company's Business and Financial Results" in the
section titled "Management’s Discussion and Analysis of Financial Condition and
Results of Operations."
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