Berry Petroleum Earns $1.17 Per Share in Third Quarter 2008; Averages 35,150 BOE/D Production and Generates Discretionary Cash Flow of $122 Million

Berry Petroleum Company (NYSE:BRY) earned net income of $53.3 million, or $1.17 per diluted share, for the three months ended September 30, 2008, up 98% from net income of $26.9 million, or $.60 per diluted share in the third quarter of 2007, according to Robert F. Heinemann, president and chief executive officer. Discretionary cash flow totaled $122 million in the quarter, up 70% from $72 million in the third quarter of 2007. (Discretionary cash flow is a non-GAAP measure; see reconciliation below.)

For the third quarter ended September 30, 2008 net production averaged 35,150 barrels of oil equivalent per day (BOE/D), an increase of 31% from the 26,873 BOE/D achieved in the same 2007 period. The average realized sales price, net of hedging, for the 2008 third quarter was $64.98 per BOE, up 36% over the $47.93 per BOE received in the 2007 period. Oil and gas revenues rose 75% to $208 million in 2008 compared to $119 million in 2007. The Company drilled 118 gross (101 net) wells in the third quarter of 2008.

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

Mr. Heinemann said, "Our assets are performing as expected. Company-wide production for the quarter was up 21% over the second quarter 2008 with the contribution of our East Texas acquisition and significant growth in our diatomite and Piceance assets.”

Production from the Company’s diatomite asset increased to an average of 2,100 BOE/D, up 400 BOE/D or 24% from the second quarter of 2008. The diatomite 2008 drilling program was completed in mid-October, with an additional 50 wells slated for 2009. Production should remain flat during the fourth quarter as the Company evaluates steam injection methods on the shallower reservoir in the northern portion of the field.

Piceance production was up 37% over the second quarter of 2008 to 22.7 MMcf/D from 26 gross wells (16 net) drilled in the third quarter. Approximately 2 MMcf/D was shut-in during September while the Rockies Express pipeline was down for maintenance. The East Texas natural gas acquisition has been contributing 5,000 BOE/D since the closing on July 15, 2008 and added 4,300 BOE/D to Berry’s average production for the quarter.

In light of the current commodity price environment Berry has reduced capital activity in the fourth quarter of 2008, by releasing eight of the 12 rigs we had drilling in the third quarter of 2008. As a result, we expect fourth quarter production to average between 37,000 and 38,000 BOE/D and remain flat into the first quarter of 2009. At current commodity prices, capital activity in 2009 will be at a reduced level compared to 2008. In 2009 capital expenditures of approximately $200 million would allow the Company to maintain production while generating free cash flow to pay down debt. The Company has the flexibility to further reduce its capital spending at lower commodity price levels.

Nine Months Results

Net income for the first nine months of 2008 was $145.5 million or $3.20 per diluted share, up 49% from $97.7 million or $2.18 per diluted share in the comparable 2007 period.

Revenues for the nine months of 2008 were $642 million, up 49% from $430 million in the same 2007 period. Discretionary cash flow totaled $332 million for the first nine months of 2008, up 85% from $179 million in the comparable 2007 period.

For the nine months ended September 30, 2008, net production averaged 30,755 BOE/D, an increase of 16% from the 26,525 BOE/D achieved in the same period in 2007. The average realized sales price per BOE, net of hedging, for the nine months ended September 30, 2008 was $66.37 per BOE, up 45% from the $45.82 per BOE received in the 2007 period.

Financial Performance

David Wolf, executive vice president and chief financial officer, stated, "Our earnings for the quarter were solid at $53 million. Our operating costs decreased on a per barrel basis as we integrated the lower cost East Texas assets into our base assets. Fuel costs to generate steam decreased approximately $3 million as natural gas prices softened by 18% while our fuel consumption increased by 7%. Our G&A increased during the quarter as we relocated personnel to our corporate headquarters in Denver. Our outstanding debt at the end of the third quarter 2008 was $1.13 billion, comprised of $200 million in senior subordinated debt, $910 million from our credit facility and $19 million from our line of credit.

"On October 17 we completed an amendment to our $1.5 billion credit facility that increased our borrowing base to $1.25 billion with bank commitments of $1.08 billion. This increase in our borrowing base confirms the value of Berry’s predictable, long-lived reserves and as of October 27, 2008, provides us with $144 million in liquidity. Our ability to generate free cash flow at lower commodity prices provides us with confidence in a volatile commodity and credit environment.”

Explanation and Reconciliation of Non-GAAP Financial Measures

Teleconference Call

An earnings conference call will be held Wednesday, October 29, 2008 at 1:30 p.m. Eastern Time (11:30 a.m. Mountain Time). Dial 1-866-831-6272 to participate, using passcode 33252082. International callers may dial 617-213-8859. For a digital replay available until November 12, 2008 dial 1-888-286-8010 (passcode 81667090). 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.

The Company uses its web site as a channel of distribution of material company information. Financial and other material information regarding the Company is routinely posted on and accessible at http://www.bry.com/index.php?page=investor.

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 "would," "will," "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. All material changes are updated in Part II, Item 1A within our Form 10-Qs filed subsequent to that date and specifically in the Form 10-Q for the period ending September 30, 2008 filed on October 29, 2008."