Permian Basin
In several transactions during 2010 and 2011, Berry acquired 26,000 net acres in the Wolfberry trend in the Permian Basin of West Texas for approximately $453 million. These assets provided Berry with 470 potential drilling locations on 40-acre spacing and an additional 400 potential locations on 20-acre spacing. Berry opened a regional office in Midland, Texas during 2010 and has fully staffed its Permian asset team. At year-end 2010, Berry’s proved reserve estimates in the Permian were 34 million barrels of oil equivalent (MMBOE). In 2010, 26 gross wells were drilled with a three-rig program and year end production was 2,550 BOE/D. In 2011, plans call for an average four-rig program and drilling of approximately 72 wells. Permian production is expected to average approximately 5,200 BOE/D in 2011.
