Piceance
In 2006, Berry acquired two properties in the Piceance targeting the Williams Fork section of the Mesaverde formation. We have a 62.5% working interest in 6,300 gross acres on our Garden Gulch property, a working interest of 95% in 4,300 gross acres and a 5% non-operating working interest in 90 wells on our North Parachute property. We have accumulated a sizable resource base, which should allow us to add significant proved reserves as we develop these assets.
We have successfully drilled 111 gross wells (69 net) at Garden Gulch and 33 gross wells (31 net) on the North Parachute property since the acquisitions of those properties. During 2009, we began a 20 well completion program testing new completion designs and saw improved well performance in line with our expectations. We continue to utilize the improved completion techniques, and results continue to meet our expectations.
In January 2011, we renegotiated the agreement covering the North Parachute property such that we have until January 31, 2020 to complete our drilling obligations. In 2010, we continued to develop the Garden Gulch and North Parachute properties through a one rig drilling program. Average daily production in the Piceance has increased from 4 MMcf/D in 2006 to 23 MMcf/D in 2010.
