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|Warren Resources Announces 2012 Production and Reserves and Provides 2013 Capital Budget|
Warren's 2012 net oil and gas production was 2,028,000 barrels of oil equivalent ("BOE"), or an average of 5,541 BOE per day. Oil production for 2012 totaled 1,109,000 net barrels, or an average of 3,030 barrels of oil per day ("BOPD"). This represents a 22% increase from the 911,000 net barrels of oil produced in 2011. Warren produced 5.5 billion cubic feet ("Bcf") net of natural gas in 2012, compared to 5.0 Bcf net of natural gas in 2011. The 2012 year-end oil production exit rate was 3,574 gross (2,910 net) BOPD, compared to compared to a year-end 2011 exit rate of 3,475 gross (2,830 net) BOPD. The 2012 year-end gas production exit rate was 53,800 gross (20,600 net) million cubic feet per day ("Mmcfd"), compared to a 2011 year-end exit rate of 61,800 gross (14,200 net) Mmcfd.
Warren's total fourth quarter 2012 net oil and gas production was 580,000 BOE, or an average of 6,303 BOE per day. Oil production for the fourth quarter of 2012 totaled 273,000 net barrels, or an average of 2,966 BOPD. This represents an 11% increase from the 247,000 net barrels of oil produced in the fourth quarter of 2011. The Company produced 1.8 Bcf net of natural gas in the fourth quarter of 2012, compared to 1.3 Bcf net of natural gas in the fourth quarter of 2011.
"Warren's 2012 production of both oil and gas represented solid growth over 2011," said
Total Proved Reserves
Warren reported that its estimated proved oil and gas reserves totaled 24.9 million barrels of oil equivalent ("MMboe") for year-end 2012 and increased approximately 12% from the 22.3 MMboe at
The estimated present value of the Company's oil and gas reserves at year-end 2012, discounted at 10% per annum and before the impact of income taxes ("PV-10") was
Proved Oil Reserves
Warren's year-end 2012 oil reserves in
The 2012 production results and development program in
The PV-10 of the Company's oil reserves at
Proved Natural Gas Reserves
Warren's proved natural gas reserves, which are comprised of properties in
Warren's estimated proved reserves at
Capital Spending Plan for 2013
The Company intends to fund 2013 capital expenditures primarily with cash flow from operations. Based on the 2013 commodity price outlook and hedge positions, the Company forecasts a 2013 capital expenditure budget of approximately
During 2013, Warren plans to drill 3 Tar horizontal producers, 5 Upper Terminal sinusoidal producers, and 5 Ranger sinusoidal producers in the WTU. Additionally, Warren plans to drill 3 Ranger sinusoidal water injectors in the WTU. In the North Wilmington Unit ("NWU"), the Company plans to drill 4 sinusoidal producers in the Ranger formation and 3 sinusoidal injectors in 2013.
The 2013 WTU capital budget consists of
The information in this release is unaudited and subject to revision. Audited and final results will be provided in our Annual Report on Form 10-K for the year ended December 31, 2012 currently planned to be filed with
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. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. A number of factors can and will cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. Some factors that could cause actual results to differ materially from those in the forward-looking statements, include, but are not limited to, changes in oil and gas prices, changes in expected levels of oil and gas reserve estimates and production estimates, the timing and results of drilling and other development activities, governmental and environmental regulations and permitting requirements and delays, the availability of capital and credit market conditions, unsuccessful exploratory activities, planned capital expenditures, unexpected cost increases, delays in completing production, treatment and transportation facilities, the availability and cost of obtaining equipment and technical personnel, operating hazards, risks associated with the availability of acceptable transportation arrangements, unanticipated operational problems, potential liability for remedial actions under existing or future environmental regulations, changes in tax, environmental and other laws applicable to our business as well as general domestic and international economic and political conditions. All forward-looking statements are made only as of the date hereof and, unless legally required, the Company undertakes no obligation to update any such statements, whether as a result of new information, future events or otherwise. The reserve replacement ratio and finding and development cost per unit are statistical indicators that have limitations, including their predictive and comparative value. The oil reserve replacement ratio is calculated by dividing production for the year into the total of proved extensions, discoveries and revisions added as shown in the table. As an annual measure, the reserve replacement ratio can be limited because it may vary widely based on the extent and timing of new discoveries and the varying effects of changes in prices and well performance. In addition, since the reserve replacement ratio and finding and development cost per unit do not consider the cost or timing of future production of new reserves, such measures may not be an adequate measure of value creation. These reserves metrics may not be comparable to similarly titled measurements used by other companies. Further information on risks and uncertainties that may affect Warren's operations and financial performance, and the forward-looking statements made herein, is available in the Company's filings with the
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