NEW YORK, Oct. 3 /PRNewswire-FirstCall/ -- Warren Resources, Inc.
(Nasdaq: WRES) (the "Company") today announced that the Company has elected to
fully redeem before maturity its 12% Secured Convertible Bonds due December
31, 2009; 12% Secured Convertible Bonds due December 31, 2010; and 12% Secured
Convertible Bonds due December 31, 2016 (collectively, the "Bonds"), at their
regular redemption price of 110% of the principal amount thereof ($1,100.00
per $1,000.00) ("Redemption Price") plus accrued interest to the redemption
date of December 5, 2005 (the "Redemption Date"). All interest on Bonds called
for redemption will cease to accrue on and after the Redemption Date of
December 5, 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 October 3, 2005.
Mr. Norman F. Swanton, Chairman & CEO of the Company, commented that
"after redeeming the Bonds, Warren will reduce debt by $3.7 million and annual
interest payments by $0.4 million. As a result of the redemptions, U.S.
Treasuries having a fair market value of $2.8 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 $43.9 million, from
$46.5 million to $2.6 million. The remaining $2.6 million of bonds outstanding
after the redemptions are fully secured at maturity by matching zero coupon
U.S. Treasury securities having a fair market value of $1.3 million."
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 (at par value of $1,000 per $1,000 Bond) into
shares of the Company's common stock at the conversion rate of $9.00 per share
of common stock. 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.
Kathleen Heaney, Investor Relations of Warren Resources, Inc.,