Production
For 2007, net production averaged a record 26,902 barrels of oil equivalent per day (BOE/D), an increase of 6% from the 25,398 BOE per day achieved in 2006. The average realized sales price, net of hedging, for the full-year 2007 was $47.50 per BOE, up 2% over the $46.67 per BOE received in the 2006 period. Oil and gas revenues rose 9% to $467 million in 2007 from $430 million in 2006.
2007 Production
Oil (Bbls): 19,753 (73%)
Natural Gas (BOE): 7,149 (27%)
Total BOE per day: 26,902
Reserves
Berry Petroleum announced that estimated proved oil and gas reserves increased by 13% to 169 million barrels of oil equivalent (BOE) as of December 31, 2007. In 2007, Berry added 35.4 million BOE at a finding and development cost of $10.07 per BOE and replaced 293% of the 9.8 million BOE (26,900 BOE per day) it produced in 2007.
At year-end 2007, the Company’s reserve mix includes 117 million barrels of crude oil, condensate and natural gas liquids, and 316 billion cubic feet of natural gas, or 69% oil and 31% natural gas. Geographically, 60% of proved reserves are in California and 40% in the Rocky Mountain region. The Company’s year-end reserves-to-production ratio increased slightly to 16.5 years, based on annualized fourth quarter 2007 average daily production. Proved developed reserves represent 61% of total proved reserves.
Berry calculated its year-end 2007 proved reserves using year-end 2007 commodity prices of $95.98 per Bbl of oil (WTI) and a Henry Hub price of $7.48 per MMBtu of natural gas (both based on their respective NYMEX prices), adjusted by field differentials to arrive at the net price received by the Company as of December 31, 2007. Berry’s average net price used in its reserve report is approximately $79.19 per Bbl of oil and liquids and $6.27 per Mcf of natural gas. The estimated discounted net present value using a 10% annual discount rate, or PV-10, of Berry’s proved reserves at December 31, 2007, was $3.5 billion ($2.4 billion after-tax), compared to $1.6 billion ($1.2 billion after-tax) in 2006.
Following is a reconciliation of the Company’s proved oil and natural gas reserve quantities between December 31, 2006 and December 31, 2007:
Balance at 12/31/2006: 150.3 MMboe
Net sale of proved reserves: (6.7 MMboe)
Extensions, discoveries, enhanced recoveries, and other revisions: 35.4 MMboe
2007 production: (9.8 MMboe)
Balance at 12/31/2007 : 169.2 MMboe
