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|Warren Resources Exercises Preferential Rights to Acquire Anadarko's Oil & Gas and Midstream Assets in the Atlantic Rim, Washakie Basin, Wyoming|
Warren elected to exercise its preferential rights to purchase Anadarko's interests after Anadarko advised the Company of an agreement to sell these assets to a third party. Depending upon the exercise of preferential rights to purchase the oil and gas assets held by other working interest owners in the Spyglass Hill and Catalina Units, the amount of working interests to be acquired by Warren and the purchase price to be paid by Warren could be reduced proportionately. The effective date of the transaction is anticipated to be
"We are pleased to have this opportunity to increase our ownership in the Atlantic Rim area and to gain 100% control of the midstream pipeline assets," said Espy Price, Chairman and CEO of Warren. "The Atlantic Rim acquisition provides us with immediate and significant increases in production and proved reserves at a very competitive price. By hedging natural gas prices through 2014, this acquisition is expected to result in attractive economics even at today's suppressed gas prices. It positions us to realize significant improvements in earnings and cash flow as gas prices recover. Additionally, the acquisition increases our large acreage position in the coal bed methane assets and the prospective, deeper formations, including the
Warren intends to finance the acquisition with cash-on-hand and borrowings under its senior credit facility, which has a borrowing base of
This news 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. Warren believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Warren's ability to obtain certain approvals, our ability to satisfy closing conditions, unexpected costs, inability to timely realize expected value from the acquisitions, decisions by other working interest owners, the volatility of oil and natural gas prices, our success in discovering, estimating, developing, producing and replacing oil and natural gas reserves, the availability and terms of capital, the effect of our hedging activities, changes in economic conditions, regulatory changes, and other factors, many of which are beyond our control drilling risks, all of which could adversely impact Warren's ability to consummate the transactions described in this news release. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Warren undertakes no obligation to publicly update or revise any forward-looking statements.
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