NEW YORK, March 31 /PRNewswire-FirstCall/ -- Warren Resources, Inc.
(Nasdaq: WRES) (the "Company") today announced that the Company has fully
redeemed its 12% Sinking Fund Bonds due December 31, 2007, which had an
outstanding principal balance of $9,036,000, at their regular redemption price
of 102% of par ($1,020.00 per $1,000.00 of bond principal), and its 12%
Sinking Fund Convertible Bonds due December 31, 2017, which had an outstanding
principal balance of $5,015,000, at their regular redemption price of 106% of
par ($1,060.00 per $1,000.00 of bond principal).
As a result of these redemptions, the Company has reduced its long term
debt from $44.7 million to $30.7 million. Additionally, U.S. Treasury
securities having a current fair market value of $4.9 million that were held
in escrow by the bond trustee to secure repayment of the Bonds were released
to the Company.
Mr. Timothy Larkin, the Chief Financial Officer of the Company, noted that
"the retirement and redemption of both our outstanding 2007 Bonds and 2017
Bonds will eliminate approximately $1.7 million per year in interest payments
and an estimated $1.5 million per year in sinking fund principal payments,
which will result in increased cash flow and net income for our Company."
American Stock Transfer & Trust Company, New York, served as the
redemption paying agent and trustee.
About Warren Resources:
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 is headquartered in Casper, Wyoming.
SOURCE Warren Resources, Inc.
/CONTACT: David Fleming of Warren Resources, Inc. +1-212-697-9660 /
/Web site: http://www.warrenresourcesinc.com/
CO: Warren Resources, Inc.
ST: New York, Wyoming
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9552 03/31/2005 09:20 EST http://www.prnewswire.com