New Production May Prove Increasingly Valuable For Berry Petroleum

| About: Linn Energy, (LINEQ)

Volume growth for buy-recommended Berry Petroleum (BRY) was interrupted in the latest
quarter reported on May 2 for reasons Chief Executive Bob Heinemann highlighted on the analyst call in February.

With temporary curtailment of new light oil production in Utah now restored, management expects 6-10% volume growth for 2007 over 2006. Meanwhile the cash flow we project for the next twelve months supports about $33 of $44 a share of Net Present Value [NPV]. The difference may be supported by unbooked reserves of an estimated 110 million barrels equivalent primarily oil in the diatomite formation in California and natural gas in the Piceance (we pronounce it pee ahnce) Basin in Colorado.

Those two areas are Berry’s major sources of most certain future growth. New production may be increasingly valuable as six-year price for both oil and natural gas are in a new uptrend. Small cap Berry has a half weighting in our illustrative energy portfolio concentrated on real assets that promise a high return providing clean fuel for global growth.

Originally published on May 2, 2007.

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