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|Warren Resources Announces Record of Decision Issued for Atlantic Rim Final Environmental Impact Statement|
|NEW YORK, May 21, 2007 (PrimeNewswire via COMTEX News Network) -- Warren Resources, Inc. (Nasdaq:WRES) today reported the issuance by the U.S. Bureau of Land Management ("BLM") of the Record of Decision and the Final Environmental Impact Statement ("Final EIS") for the Atlantic Rim Natural Gas Development Project in Carbon County, Wyoming. The Record of Decision final action of the BLM allows the development of our Atlantic Rim project by drilling up to 2,000 wells, of which 1,800 would be coalbed methane ("CBM") wells and 200 deeper conventional wells. Based upon the current knowledge of the geologic formations, the BLM's proposed minimum well spacing is 80 acres per well.
Of the four alternatives examined in the Final EIS, the BLM selected preferred Alternative D, which monitors and minimizes the amount of surface disturbance. The maximum disturbed acreage would initially limit the Atlantic Rim Project to approximately 1,200 CBM wells. However, reclaimed acreage would be credited against the maximum allowable disturbed acreage, including short-term reclaimed acreage following drilling and completion activities, thereby increasing the number of wells to the maximum of 1,800 CBM wells. Waste water produced from CBM natural gas production wells would be disposed of by subsurface re-injection.
Norman F. Swanton, Chairman and Chief Executive Office, commented, "The issuance of the final Record of Decision for drilling the Atlantic Rim project in the Washakie Basin is a tremendous step forward for the commencement of full scale development of this reserve rich play. We believe this will help Warren realize its potential during the next several years. The Record of Decision is a culmination of nearly six years of cooperative effort between the BLM, various local, state and federal agencies, environmental organizations and industry."
With the issuance of the Record of Decision, Warren and its joint venture partner, Anadarko Petroleum Corp., plan to commence developmental drilling activities in mid-July 2007. The joint venture intends to initially drill 70 producing CBM wells in the 21,929 acre Sun Dog Unit, which Warren considers the heart of the play.
The Notice of Availability of the Record of Decision for the Final EIS was published in the U.S. Federal Register and can be viewed on the BLM's website at http://www.blm.gov/wy/st/en/info/NEPA/rfodocs/atlantic_rim.html.
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 focused on the exploration and development of coalbed methane properties located in the Rocky Mountain region and oil recovery programs in the Wilmington Field 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 (www.sec.gov).
Warren Resources, Inc.