Warren Resources Announces Results of Recently Recompleted
Wilmington Well
NEW YORK, May 2 /PRNewswire-FirstCall/ -- Warren Resources, Inc. (NASDAQ:WRES)
today announced that it has recently recompleted well No. 1907 in the
Wilmington Townlot Unit. This well's production has stabilized at 75 barrels of
oil per day from the Terminal zone. The well was originally drilled by Warren
in 1999, but was shutdown due to mechanical failure during the prior litigation
with Magness Petroleum Company. After acquiring Magness's interest in February
2005 (effective January 1, 2005), Warren recompleted the well in March 2005.
During March 2005, the Wilmington Townlot Unit produced and sold 15,819 gross
barrels of oil at an average realized sales price of $41.16 per barrel for
revenues of $651,125. This compares to February 2005 production results of
9,821 gross barrels of oil at an average realized sales price of $33.99 per
barrel for revenues of $333,825.
"We are extremely pleased to announce the improved oil production and sales
from our resumed operating activities in the Wilmington Unit. The increased oil
production for March 2005 is very notable since there are no waterflood
injection wells near the 1907 well. As a result, the well is not receiving
significant waterflood pressure assistance. We are enthusiastically looking
forward to re-commencing waterflood pattern drilling activities in June 2005 in
the Wilmington Unit that have been suspended since 1999," stated Norman F. Swanton, Warren's Chairman and CEO.
Warren holds a 98.5% working interest in the Wilmington Townlot Unit and is
planning on drilling approximately 29 net new producing wells in the Unit in
2005 and potentially up to 150 additional producing wells to fully develop the
Terminal zone.
Warren Resources, Inc. is a growing independent energy company engaged in the
exploration and development of domestic natural gas and oil reserves. Warren is
primarily focused on the exploration and development of coalbed methane
properties located in the Rocky Mountain region and its waterflood oil recovery
program in the Wilmington Townlot Unit within the Los Angeles Basin of
California. The Company is headquartered in New York, New York, and its
exploration and development subsidiary, Warren E&P, is based in Casper, Wyoming
and Long Beach, California.
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Warren believes that its expectations are based on
reasonable assumptions. No assurance, however, can be given that its goals will
be achieved. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other expectations
expressed in this release. While Warren makes these forward-looking statements
in good faith, neither Warren nor its management can guarantee that the
anticipated future results will be achieved. See "Risk Factors" in the
Management's Discussion and Analysis included in the company's 2004 Annual
Report on Form 10-K and other filings with the Securities and Exchange
Commission. DATASOURCE: Warren Resources, Inc.
CONTACT: David Fleming of Warren Resources, Inc., +1-212-697-9660 Web site: http://www.warrenresourcesinc.com/
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