NEW YORK, Nov. 20 /PRNewswire-FirstCall/ -- Warren Resources, Inc.
(Nasdaq: WRES), a growing oil and gas exploration and production company,
today announced that it has entered into a five-year, $150,000,000 Credit
Agreement with JP Morgan Chase Bank, National Association, as Administrative
Agent (the "Agent"), the lenders party thereto, with Warren Resources of
California, Inc. and Warren E&P, Inc., as Guarantors (the "Credit Facility").
The Credit Facility provides for a revolving credit facility up to the lesser
of (i) the Borrowing Base, (ii) $150 million and (iii) the Draw Limit
requested by the Company. The Credit Facility matures on November 15, 2011. It
is secured by substantially all of our assets and is guaranteed by the
Guarantors, which are two of our wholly-owned subsidiaries.
The Borrowing Base will be determined by the lenders at least semi-
annually on each April 1 and October 1, beginning April 1, 2007. The initial
Borrowing Base is $40 million.
Depending on the current level of borrowing base usage, the annual
interest rate on each base rate borrowing will be at the Borrower's option
either: (a) the higher of (i) the Agent's prime rate of interest announced
from time to time, or (ii) the Federal Funds rate most recently determined by
the Agent, plus 1/2% per annum, plus an applicable margin that ranges from
0.25% to 1.0%, or (b) Eurodollar Loan rate plus an applicable margin that
ranges from 1.25% to 2%.
The Credit Facility will be used primarily for working capital, capital
expenditures, permitted acquisitions, and other general corporate purposes.
"We are very pleased to have established this senior secured Credit
Facility with JP Morgan Chase Bank," said Timothy A. Larkin, Chief Financial
Officer. "The Credit Facility provides us with cost effective financing to
fund our capital expenditure budget for 2007 and beyond. This includes the
development of our Wilmington oil field in California and our Atlantic Rim CBM
project in Wyoming."
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 primary and
secondary water flood oil recovery programs in the Wilmington Units 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.,
has offices in Casper, Wyoming and Long Beach, California.
This press 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. Statements regarding projections of revenues or income
or reserves or similar items, such as statements pertaining to future
revenues, future capital expenditures, future cash flows, future operations or
results, and other statements that are not historical facts, are examples of
forward looking statements. These forward-looking statements reflect our
current views with respect to future events, based on what we believe are
reasonable assumptions. No assurance can be given, however, that these events
will occur. These statements are subject to risks and uncertainties that could
cause actual results to differ materially, including without limitation risks
of declining oil and gas prices, competition for prospects, accuracy of
reserve estimates, estimated rates of production, increases in drilling and
lifting costs, increases in equipment and supply costs and other factors
detailed in the Company's filings with the Securities and Exchange Commission
SOURCE Warren Resources, Inc.
CONTACT: David Fleming of Warren Resources, Inc., +1-212-697-9660
Web site: http://www.warrenresourcesinc.com