Achieves Second Quarter Production Exit Rate of 30,000 BOE/D

DENVER–(EMWNews)–Berry Petroleum Company (NYSE:BRY)

earned net income of $49 million, or $1.08 per diluted share, for the

three months ended June 30, 2008, up 128% from net income of $21.4

million, or $.48 per diluted share excluding the net gain on sale of

assets of $30.6 million in the second quarter of 2007, according to

Robert F. Heinemann, president and chief executive officer.

Discretionary cash flow totaled a record $108 million in the quarter, up

82% from $59.4 million in the second quarter of 2007. (Discretionary

cash flow is a non-GAAP measure; see reconciliation below.)

For the second quarter ended June 30, 2008 net production averaged a

record 29,000 barrels of oil equivalent per day (BOE/D), an increase of

7% from the 27,195 BOE/D achieved in the same 2007 period. The average

realized sales price, net of hedging, for the 2008 second quarter was

$69.77 per BOE, up 54% over the $45.43 per BOE received in the 2007

period. Oil and gas revenues rose 63% to $185 million in 2008 compared

to $113 million in 2007. The Company drilled 120 gross (112 net) wells

in the second quarter of 2008.

For 2008 and 2007, net production in BOE per day was as follows:

	Second Quarter Ended June 30
	2008 Production			2007 Production
Oil (Bbls)	20,611	71%		20,163	74%
Natural Gas (BOE)	8,389	29%		7,032	26%
Total BOE per day	29,000	100%		27,195	100%

Mr. Heinemann said, “Execution of our

development plans to reach a mid-year production goal of 30,000 BOE/D

has been a focus for each of our asset teams this year and I am pleased

to announce that through growth in both our oil and gas assets we

reached this production milestone and exited the second quarter of 2008

at 30,000 BOE/D from our base assets.

“Our oil development projects in California

continue to deliver exceptional results. Diatomite production is up 24%

over first quarter 2008 levels to approximately 1,700 BOE/D. We continue

to bring on new wells, expand infrastructure and appraise the productive

limits of the field. We expect to exit 2008 in the diatomite with

production of 3,000 BOE/D. Production from Poso Creek is up 19% from the

first quarter of 2008 to 3,200 BOE/D. Our infill horizontal program,

along with our development at Ethel D, has been successful in keeping

our South Midway production decline in the 5% range as expected.

“Our natural gas assets also performed well

with Piceance production in June up 24% over the first quarter of 2008,

with average daily production of 20.8 MMcf/D. We completed 12 wells in

the Piceance during the quarter and we expect to bring an additional 19

wells on production during the third quarter. Production in the DJ basin

was steady at 19.6 MMcf/D and we also completed the interpretation of an

additional 75 square miles of recently acquired seismic data in the DJ

and expect to replenish our low-risk drilling inventory.

Six Months Results

Net income for the first six months of 2008 was $92.2 million or $2.03

per diluted share, up 30% from $70.8 million or $1.58 per diluted share

in the comparable 2007 period. Excluding an asset sale and impairment of

an asset held for sale for a combined net after-tax gain of $28.8

million, net income for the six months ended June 30, 2007 was $42.0

million or $.94 per diluted share.

Revenues for the six months of 2008 were $400.8 million, up 35% from

$296.7 million (including a $50.4 million gain on sale of assets) in the

same 2007 period. Discretionary cash flow totaled $210 million for the

first six months of 2008, up from $108 million in the comparable 2007

period.

For the six months ended June 30, 2008, net production averaged 28,530

BOE/D, an increase of 8% from the 26,330 BOE/D achieved in the same

period in 2007. The average realized sales price per BOE, net of

hedging, for the six months ended June 30, 2008 was $67.23 per BOE, up

50% from the $44.72 per BOE received in the 2007 period.

East Texas Acquisition Closed

On July 15, 2008 Berry closed on the previously announced East Texas

natural gas asset acquisition for a price of $653 million, including

closing adjustments that reflect revenue and capital from the February

1, 2008 effective date. Proved reserves are estimated to be 335 billion

cubic feet equivalent with an all-in finding and development cost of

$2.77/Mcfe. The acquisition adds approximately 32 MMcfe/D to Berry’s

production from 100 producing wells.

Development plans include over 100 drilling locations targeting stacked

pays in various productive zones including the Pettit, Travis Peak,

Cotton Valley, and Bossier sands, and the Bossier and Haynesville

shales. We increased our 2008 capital budget by $75 million to a total

of $370 million to fund the development of this asset. We have also

conducted three 30-day vertical Haynesville tests which averaged 1.2

MMcf/D per well and are encouraged by the potential for the horizontal

development of this resource and the realization of the upside potential

of this acquisition.

With the contribution of these assets, Berry’s

production today tops 35,000 BOE/D and we expect to deliver a 20% to 25%

increase in production over 2007 and a 40% to 45% increase in net proved

reserves in 2008 at a finding and development cost between $10 and $13

per BOE. Berry expects to end the year with between 235 million and 250

million BOE of proved reserves and average production for the year of

between 32,500 and 33,500 BOE/D. For the third quarter of 2008 Berry

expects to average approximately 35,000 BOE/D and to achieve a December

2008 exit rate between 39,000 and 40,000 BOE/D.”

Financial Performance

Shawn M. Canaday, vice president, controller and interim chief financial

officer, stated, “Our financial performance

during the quarter was strong with a record $108 million in

discretionary cash flow. At $100/Bbl West Texas Intermediate pricing, we

would expect to generate approximately $450 million in cash flow for the

year which should fully fund our $370 million capital program and allow

us to accelerate our high return oil projects and repay debt.

In conjunction with our East Texas acquisition we entered into a new

five year $1 billion secured credit facility and a short-term $100

million line of credit which should provide us with the liquidity to

execute our 2008 development plans. Our operating costs increased $13.6

million during the second quarter when compared to the first quarter.

Approximately $10 million of this change is due to our increased volume

of conventional steam generation at Poso Creek and the diatomite coupled

with a $2/MMBtu increase in the price of California natural gas during

the quarter.”

Explanation and Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
		06/30/08				06/30/07					06/30/08				06/30/07
Net cash provided by operating activities	$	106.6			$	81.1				$	193.8			$	88.0
Add back: Net increase (decrease) in current assets		29.2				(8.2	)				29.3				5.1
Add back: Net decrease (increase) in current liabilities		(27.3	)			(13.5	)				(13.0	)			14.6
Discretionary cash flow	$	108.5			$	59.4				$	210.1			$	107.7

Teleconference Call

An earnings conference call will be held Friday, July 25, 2008 at 10:30

a.m. Eastern Time (7:30 a.m. Pacific Time). Dial 1-866-356-4123 to

participate, using passcode 39819015. International callers may dial

617-597-5393. For a digital replay available until August 8, 2008 dial

1-888-286-8010 (passcode 28441625). Listen live or via replay on the web

at http://www.bry.com. Transcripts of

this and previous calls may be viewed at www.bry.com

in the “Investor Center.”

About Berry Petroleum Company

Berry Petroleum Company is a publicly traded independent oil and gas

production and exploitation company with operations in California, Utah,

Colorado and Texas.

Safe harbor under the “Private Securities

Litigation Reform Act of 1995”

Any statements in this news release that are not historical facts are

forward-looking statements that involve risks and uncertainties. Words

such as “plans,” “will,”

“expect,” “target,”

“goal,” and forms

of those words and others indicate forward-looking statements. Important

factors which could affect actual results are discussed in PART 1, Item

1A. Risk Factors of Berry’s 2007 Form 10-K filed with the Securities and

Exchange Commission on February 26, 2008 under the heading “Other

Factors Affecting the Company’s Business and Financial Results”

in the section titled “Management’s

Discussion and Analysis of Financial Condition and Results of Operations

and all material changes are updated in Part II, Item 1A within our Form

10-Qs filed subsequent to that date.”

CONDENSED STATEMENTS OF INCOME
(In thousands)
(unaudited)
	Three Months				Six Months
	06/30/08		06/30/07		06/30/08		06/30/07
Revenues
Sales of oil and gas	$185,332		$113,426		$349,827		$215,200
Sales of electricity	16,979		13,867		32,906		28,463
Gas marketing	11,531		–		14,762		–
Gain on sale of assets	–		50,400		414		50,398
Interest and other, net	1,564		1,536		2,893		2,647
Total	215,406		179,229		400,802		296,708
Expenses
Operating costs – oil & gas	55,185		35,725		96,814		69,335
Operating costs – electricity	15,515		11,083		31,914		25,254
Production taxes	7,481		4,139		13,448		7,954
Depreciation, depletion & amortization – oil & gas	29,073		23,397		56,148		42,122
Depreciation, depletion & amortization – electricity	652		961		1,345		1,723
Gas marketing	11,071		–		14,053		–
General and administrative	11,160		9,651		22,543		19,958
Interest	3,951		4,976		7,689		9,267
Commodity derivatives	59		–		767		–
Dry hole, abandonment, impairment & exploration	3,464		3,519		7,590		4,168
Total	137,611		93,451		252,311		179,781
Income before income taxes	77,795		85,778		148,491		116,927
Provision for income taxes	28,654		33,821		56,319		46,115
Net income	$ 49,141		$ 51,957		$ 92,172		$ 70,812
Basic net income per share	$1.10		$1.18		$2.07		$1.61
Diluted net income per share	$1.08		$1.16		$2.03		$1.58
Cash dividends per share	$0.075		$0.075		$0.15		$0.15
Weighted average common shares:
Basic	44,478		44,029		44,435		43,973
Diluted	45,608		44,895		45,483		44,754

CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
		06/30/08		12/31/07
Assets
Current assets		$ 270,871		$ 161,019
Property, buildings & equipment, net		1,405,560		1,275,091
Other assets		73,885		15,996
		$1,750,316		$1,452,106
Liabilities & Shareholders’ Equity
Current liabilities		$ 495,994		$ 271,369
Deferred taxes		87,858		128,824
Long-term debt		511,000		445,000
Other long-term liabilities		367,469		146,939
Shareholders’ equity		287,995		459,974
		$ 1,750,316		$ 1,452,106

CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
		Six Months
		Berry Petroleum Company Investors and Media Shawn Canaday, 1-303-999-4000 Todd Crabtree, 1-866-472-8279 www.bry.com Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions