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|Warren Resources Completes Redemption of All Outstanding Bonds Due 2007 and 2017|
NEW YORK, March 31 /PRNewswire-FirstCall/ -- Warren Resources, Inc. (Nasdaq: WRES) (the "Company") today announced that the Company has fully redeemed its 12% Sinking Fund Bonds due December 31, 2007, which had an outstanding principal balance of $9,036,000, at their regular redemption price of 102% of par ($1,020.00 per $1,000.00 of bond principal), and its 12% Sinking Fund Convertible Bonds due December 31, 2017, which had an outstanding principal balance of $5,015,000, at their regular redemption price of 106% of par ($1,060.00 per $1,000.00 of bond principal).
As a result of these redemptions, the Company has reduced its long term debt from $44.7 million to $30.7 million. Additionally, U.S. Treasury securities having a current fair market value of $4.9 million that were held in escrow by the bond trustee to secure repayment of the Bonds were released to the Company.
Mr. Timothy Larkin, the Chief Financial Officer of the Company, noted that "the retirement and redemption of both our outstanding 2007 Bonds and 2017 Bonds will eliminate approximately $1.7 million per year in interest payments and an estimated $1.5 million per year in sinking fund principal payments, which will result in increased cash flow and net income for our Company."
American Stock Transfer & Trust Company, New York, served as the redemption paying agent and trustee.
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 is headquartered in Casper, Wyoming.
SOURCE Warren Resources, Inc. -0- 03/31/2005 /CONTACT: David Fleming of Warren Resources, Inc. +1-212-697-9660 / /Web site: http://www.warrenresourcesinc.com/ (WRES) CO: Warren Resources, Inc. ST: New York, Wyoming IN: OIL SU: LH -- NYTH110 -- 9552 03/31/2005 09:20 EST http://www.prnewswire.com