As part of the strategic review process, the company has selected an undisclosed financial adviser, the sources said.
Berry has a market value of approximately $730m and has $395m in long-term debt as of 20 June 2022.
One of the sources said the California-focused company could attract interest from potential international energy companies or suitors backed by private equity funds.
Upstream energy company Berry is focussed on onshore, low geologic risk, conventional oil reserves located primarily in the San Joaquin basin of California, as well as the Uinta basin of Utah.
In California, the firm has properties that are primarily mature, low-decline oil wells. These are in Midway-Sunset, South Belridge, McKittrick, and Poso Creek fields in the San Joaquin basin in Kern County.
The firm’s Uinta Basin assets are located in the Brundage Canyon, Antelope Canyon, Ashley Forest, and Lake Canyon areas.
Berry also has natural gas gathering systems comprising approximately 500 miles of pipeline and associated compression and metering facilities.
California has set a target to completely phase out oil extraction by 2045, making it difficult for oil producing firms to operate in the state.
Established in 1997, Aera Energy production is centred in the San Joaquin Valley, where it operates nearly 13,000 wells.
The JV , which also has oil field operations in the Ventura and Monterey counties, produced approximately 95,000 barrels of crude oil equivalent per day in 2021.