NEW YORK, Sept. 13 /PRNewswire-FirstCall/ -- Warren Resources, Inc.
(Nasdaq: WRES) ("Warren" or "Company") announced that its wholly-owned
subsidiary, Warren E&P, Inc. has recently signed two new agreements for
drilling rigs and related services with Nabors Well Services Co. ("Nabors")
and Ensign US Drilling ("Ensign") for drilling oil wells in the Company's
Wilmington Townlot Unit, Wilmington, California.
The Nabors agreement has an initial term of two years, with Warren having
the right to extend the drilling rig contract for one additional year. Under
the terms of the contract, Nabors will supply the drilling Rig # 411 complete
with an operating crew of 24 persons. The contract provides for directional
drilling to maximum well depths of 10,000 feet using a 1,000 horsepower GE
electric motor. The daily charge for the rig at operating rates along with the
Nabors' crew is approximately $20,000, representing an annual contract
commitment of approximately $7 million. The rig is currently being retrofitted
by Nabors and will be mobilized and begin drilling directional wells at the
Wilmington Unit in October 2005.
The Ensign agreement has a term of one year. Under the terms of the
contract, Ensign is supplying the drilling Rig # 518 complete with an
operating crew of 22 persons. The contract provides for directional drilling
to maximum well depths of 5,500 feet using a 600 horsepower diesel motor. The
daily charge for the rig at operating rates along with the Ensign's crew is
approximately $12,000, representing an annual contract commitment of
approximately $4.4 million. The rig is onsite and currently drilling
directional wells at the Wilmington Unit.
"These new drilling rig agreements with Nabors and Ensign will assure
long-term rig availability for our Wilmington Townlot Unit," noted Norman F.
Swanton, Warren's Chairman and CEO, "and should allow us to accelerate the
rate of development of the field over the next few years."
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 water flood
oil recovery program in the Wilmington Unit located in the Los Angeles Basin
of California. The Company is headquartered in New York, New York, and its
exploration and development subsidiary, Warren E&P, Inc., is based in Casper,
Wyoming and Long Beach, California.
SOURCE Warren Resources
/CONTACT: Investor Relations - Kathleen Heaney of Warren Resources,
/Web site: http://www.warrenresourcesinc.com/
CO: Warren Resources, Nabors Well Services Co., Ensign US Drilling
ST: New York, California
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1332 09/13/2005 15:36 EDT http://www.prnewswire.com