NEW YORK, May 12, 2010 (GlobeNewswire via COMTEX) --Warren Resources, Inc. (Nasdaq:WRES) today announced that two new Tar reservoir wells drilled since April 15, 2010 in the Wilmington Townlot Unit ("WTU") in California have been placed on production and have exhibited initial producing rates of approximately 400 barrels of oil per day ("BOPD") combined. Wells drilled to the Tar formation typically experience production decline rates of 40% to 60% in the first year. These are the first two of eight wells in the Tar formation (seven producers and one water injector) budgeted for 2010 and the first wells drilled at WTU since late 2008. Additional wells may be added to the program in the upcoming months, including possible wells in the Upper Terminal and Ford reservoirs. Warren owns a 98.9% working interest in WTU.
The WTU #2171 was horizontally drilled to a total depth of 5,117 feet in the D1A Tar reservoir at a vertical depth of about 2,700 feet from the surface. The 1,500 foot completion interval is currently producing approximately 200 BOPD. The WTU #2169 was drilled to a total depth of 5,082 feet with a 1,400 foot horizontal completion interval and is also currently producing approximately 200 BOPD.
"We are extremely pleased by the strong results of these new Tar wells," commented Norman F. Swanton, Chairman and Chief Executive Officer. "We have been focused on our development, drilling planning and completion work over the past 18 months. Utilizing the latest technology, coupled with strong teamwork, gives us confidence in our ability to plan and drill highly targeted wells in our productive reservoirs."
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 such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. All forward-looking statements are made only as of the date hereof and the Company undertakes no obligation to update any such statement. Further information on risks and uncertainties that may affect Warren's operations and financial performance, and the forward-looking statements made herein, is available in the Company's public filings with the Securities and Exchange Commission (www.sec.gov).
About Warren Resources
Warren Resources, Inc. is an independent energy company engaged in the exploration and development of domestic oil and natural gas reserves. Warren's activities are primarily focused on oil in the Wilmington field in California and natural gas in the Washakie Basin in Wyoming. The Company is headquartered in New York, New York, and its exploration and development subsidiary, Warren E&P, Inc., has offices in Casper, Wyoming and Long Beach, California.
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