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|Warren Resources Announces Results of Recently Recompleted Wilmington Well|
NEW YORK, May 2 /PRNewswire-FirstCall/ -- Warren Resources, Inc. (Nasdaq: WRES) today announced that it has recently recompleted well No. 1907 in the Wilmington Townlot Unit. This well's production has stabilized at 75 barrels of oil per day from the Terminal zone. The well was originally drilled by Warren in 1999, but was shutdown due to mechanical failure during the prior litigation with Magness Petroleum Company. After acquiring Magness's interest in February 2005 (effective January 1, 2005), Warren recompleted the well in March 2005.
During March 2005, the Wilmington Townlot Unit produced and sold 15,819 gross barrels of oil at an average realized sales price of $41.16 per barrel for revenues of $651,125. This compares to February 2005 production results of 9,821 gross barrels of oil at an average realized sales price of $33.99 per barrel for revenues of $333,825.
"We are extremely pleased to announce the improved oil production and sales from our resumed operating activities in the Wilmington Unit. The increased oil production for March 2005 is very notable since there are no waterflood injection wells near the 1907 well. As a result, the well is not receiving significant waterflood pressure assistance. We are enthusiastically looking forward to re-commencing waterflood pattern drilling activities in June 2005 in the Wilmington Unit that have been suspended since 1999," stated Norman F. Swanton, Warren's Chairman and CEO.
Warren holds a 98.5% working interest in the Wilmington Townlot Unit and is planning on drilling approximately 29 net new producing wells in the Unit in 2005 and potentially up to 150 additional producing wells to fully develop the Terminal zone.
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, Warren E&P, is based in Casper, Wyoming and Long Beach, California.
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 its goals will be achieved. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. While Warren makes these forward-looking statements in good faith, neither Warren nor its management can guarantee that the anticipated future results will be achieved. See "Risk Factors" in the Management's Discussion and Analysis included in the company's 2004 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
SOURCE Warren Resources, Inc. -0- 05/02/2005 /CONTACT: David Fleming of Warren Resources, Inc., +1-212-697-9660/ /Web site: http://www.warrenresourcesinc.com / (WRES) CO: Warren Resources, Inc.; Magness Petroleum Company ST: New York IN: OIL SU: AA -- NYM280 -- 1404 05/02/2005 14:19 EDT http://www.prnewswire.com