Uinta

Utah property map

In 2003, Berry established our initial acreage position in the Uinta, which includes the Ashley Forest area, targeting the Green River formation that produces both light oil and natural gas. We acquired the Brundage Canyon leasehold in Duchesne County in Northeastern Utah, which consists of working interests in approximately 51,000 gross acres on federal, tribal, and private leases. We have working interests in approximately 57,000 gross acres and exploratory rights in approximately 61,230 net acres in the Lake Canyon project, which is located immediately west of our Brundage Canyon producing properties.

In 2010 Berry drilled 60 gross wells, which included 36 gross wells in Brundage Canyon, 20 gross wells in Ashley Forest and four gross wells in Lake Canyon. We also participated in four non-operated Lake Canyon wells. The Lake Canyon drilling program identified a new pay interval in the Upper Wasatch that was commingled with the Green River formation, yielding encouraging results. We continue to monitor the progress of our initial water flood pilot in Brundage Canyon, which was implemented in the fourth quarter of 2009, and began injection on our second Brundage Canyon water flood pilot in the fourth quarter of 2010.

The Ashley Forest Environmental Impact Study (EIS) continues to progress, and we anticipate approval in 2011. We plan to run a one rig program in the Uinta in 2011 focused toward developing areas of higher oil potential with added emphasis on the development of Lake Canyon where plans are to drill 21 follow-up and extension wells. Our drilling inventory in the Uinta is approximately 350 locations distributed between Brundage Canyon, Ashley Forest, and Lake Canyon. Average daily production in Uinta was approximately 5,350 BOE/D in 2010 compared to 4,930 BOE/D in 2009.