NEW YORK, Sept 21, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Warren Resources, Inc.
(Nasdaq: WRES) (the "Company") today announced that the Company has elected to
fully redeem before maturity its 13.02% Sinking Fund Convertible Bonds due
December 31, 2015 (the "Bonds"), at their regular redemption price of 100% of
the principal amount thereof ($1,000.00 per $1,000.00) plus accrued interest
to the redemption date of November 23, 2005 (the "Redemption Date"). All
interest on Bonds called for redemption will cease to accrue on and after the
Redemption Date of November 23, 2005.
The redemptions are being made under terms of the Bonds, which permit the
Company to redeem them prior to maturity. Notice of redemption is being mailed
to bondholders of record on or about September 21, 2005.
Mr. Timothy Larkin, Chief Financial Officer of the Company, noted that "by
redeeming the Bonds, Warren will further reduce debt by $10.6 million, annual
interest payments by $1.4 million and annual sinking fund requirements by $0.4
million. As a result of the redemption, U.S. Treasuries having a fair market
value of $2.7 million being held in escrow by the Trustee to secure repayment
of the Bonds will be released to the Company.
During 2005, Warren will have reduced debt by $40.2 million, from
$46.5 million to $6.3 million. Additionally, the remaining $6.3 million of
bonds outstanding after the redemption are fully secured at maturity by
matching zero coupon U.S. Treasury securities having a fair market value of
American Stock Transfer & Trust Company is the redemption Paying Agent and
For Cash Redemption Payment: Payment of the Redemption Price on the Bonds
called for redemption will be paid only upon presentation and surrender of the
Bonds by Bondholders along with a letter of transmittal duly completed and
electing cash redemption in the following manner:
By Mail or in Person to:
American Stock Transfer and Trust Company
59 Maiden Lane
New York, NY 10038
Attn: Reorg/Exchange Department
For Bondholders Electing to Convert to Common Stock: At any time prior to
the close of business on the Redemption Date, bondholders may exercise their
right to convert their Bonds into shares of the Company's common stock at the
conversion rate of 125 shares of the Company's Common Stock per $1,000
principal amount at maturity ($8.00 per share). The Bonds may be converted
any time prior to the Redemption Date by the bondholder surrendering the
original Bond certificate to the Paying Agent/Trustee along with either (1)
the conversion notice (located on the back of the certificate) duly completed
and executed, or (2) a separate Bond Conversion Election Form contained in the
Letter of Transmittal duly completed and executed.
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 has principal offices in Casper,
Wyoming and Long Beach, California.
SOURCE Warren Resources, Inc.
Investor Relations Contact: Kathleen Heaney, +1-212-753-2137