Berry Petroleum Co. Q3 2009 Earnings Call Transcript

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2009-10-30 12:51:08.0

Tags: Opportunity, Call Transcript, Earnings, Same-store Sales, Berry Petroleum Co., Uinta, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Michael Jacobs – Tudor, Pickering & Company.

Mike Jacobs – Tudor, Pickering & Company

Just wondering if we can clarify the 5% production growth number. Is that kind of on a same-store sales basis or is that including the DJ production for the first quarter of '09?

Michael Duginski

That does not include the DJ.

Mike Jacobs – Tudor, Pickering & Company

Just ticking through the regional items, obviously limited CapEx spending this year and focus on the heavy oil projects. But when I look at the 7.5% sequential decline in the Uinta, how should I think about kind of 2010 versus 2009 growth in the Uinta, any sort of guidance on that would be great.

Robert F. Heinemann

I think what is going on there is we're seeing better prospects at Brundage Canyon, our drilling costs have come down, as you would expect. We have category exemptions to start drilling in the forest so we have a bigger portfolio of opportunities. I think just without having a table of numbers in front of us, I would think we would keep you went to flat to maybe slightly up next year.

It's just going to be a matter of what time we start to put the money to work, obviously earlier the better. And we may get in a situation where we run a rig full year there and then bring a second rig in for the summer months when we can drill some of the more difficult locations.

Mike Jacobs – Tudor, Pickering & Company

How much spending do you think you would need to just keep Uinta flat and maybe, I guess just on the Uinta?

Robert F. Heinemann

Mike, we really haven't pinned it down on Uinta, but we're going to say about $30 million, that would be my guess off the top of my head.

Mike Jacobs – Tudor, Pickering & Company

One more if I can move to East Texas. Other operators have talked about the Pettit opportunity, I think you guys, its one of the intervals that you originally identified. Have you identified any Pettit oil opportunities in East Texas and is that something that you guys might consider going after?

Robert F. Heinemann

Mike, we have not identified any Pettit oil opportunities in our section. From our logging and from our shows we would say that our Pettit is more than likely 100% gas. At this point, we don't believe we're in the oil trend.

 

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