Berry Petroleum Company has entered into an agreement to sell its East Texas gas gathering system to a private party for $18.5 million in cash. The Company will enter into a concurrent long-term gas gathering agreement for its East Texas production. The transaction is expected to close in June 2009. The completion of the transaction is subject to certain conditions and there is no assurance that all such conditions will be satisfied.
In addition, the Company announced that its board of directors has authorized a $32 million increase to its 2009 capital budget now totaling approximately $132 million.
Mr. Heinemann, president and chief executive officer said, “Our significantly improved financial position has enabled us to allocate more capital to our highest rate of return projects. Proceeds from the sale of the East Texas midstream asset will partially offset the increase in our capital spending. We continue to project that debt repayment for the balance of the year will be approximately $60 million.”