Mr. Heinemann continued, “We were pleased to receive revisions to our project approval letter from the California Department of Oil and Gas and Geothermal Resources (DOGGR) in February, which, among other modifications, removed the requirement to cease cyclic steaming operations on wells located within 150 feet of a failed well bore until that well was either repaired or abandoned. Additionally, revisions in the administration of current regulations from DOGGR should reduce operational issues we had experienced. For example, shutting in production in proximity to a failed well bore exacerbated the stress on the surrounding wells and locally increased the incidence of additional failures. The requirement to shut in the surrounding wells reduced the number completions that we were able to bring back online. We are pleased that we now have a sufficient set of active completions in our cyclic operations going forward, although we do expect 2012 Diatomite production to be approximately 400 BOE/D behind schedule as a result of all these issues. We continue to expect total production to be within our guidance range of 38,000 - 39,000 BOE/D for 2012."Production from the Company's next generation heavy oil projects, which include our McKittrick asset, averaged 1,510 BOE/D, a 19% increase from the fourth quarter of 2011. Drilling began at the Main Camp and Pan properties and the Company expects to drill approximately 40 wells here during the remainder of the year.
Berry Petroleum Announces Results For First Quarter Of 2012
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