South Midway-Sunset (S. Midway)
Berry owns and operates properties in the South Midway Sunset Field in the San Joaquin Valley. Production from our properties in the South Midway Sunset Field relies on thermal EOR methods, primarily cyclic steaming, to place steam effectively into the remaining oil column. This is our most mature thermally enhanced asset, with production from our Ethel D properties having commenced 100 years ago. In 2009, we drilled 19 horizontal wells and 18 vertical producers at the South Midway Sunset Field. We also accelerated our continuous steam support for these horizontal wells by drilling six vertical steam injectors.
In 2010 the Company began an expanded cyclic development of its legacy S. Midway assets and drilled 35 new producers, increasing production by 500 BOE/D from 2009. Berry continued a horizontal drilling program and expanded the continuous steam injection project by drilling 15 horizontal wells and 10 vertical steam injectors.
At Poso Creek, which we acquired in 2003, the steam flood was expanded during 2010 by drilling nine new producers and three new injectors and average production from these properties increased from 50 BOE/D at acquisition in 2003 to 3,400 BOE/D in 2010. A new water plant was commissioned to accommodate future production growth.
Average daily production from all S. Midway assets was approximately 11,780 BOE/D in 2010. In Berry’s legacy assets, expectations are to drill an additional four horizontal wells and 13 vertical injectors during 2011. At Ethel D, the steam flood pilot was deemed economic and, as a result, a plan to drill 15 vertical producers and eight steam injectors is in place for 2011. At Poso creek, the Company will continue to expand the steam flood by drilling nine producers and three steam flood injectors.
