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|Warren Resources Announces Amendment to Proposal to Acquire Oil and Gas Assets of Five Affiliated Drilling Programs|
NEW YORK, April 12, 2007 (PRIME NEWSWIRE) -- Warren Resources, Inc. (Nasdaq:WRES) announced today that the proposals previously reported on March 29, 2007 ("Original Proposal") by Warren to acquire the respective oil and gas properties and related assets of five drilling programs that Warren formed from 2000 to 2003 and for which it serves as managing general partner have been amended as follows:
1. The purchase prices to be paid by Warren shall be in the form of shares of restricted Warren common stock (the "Common Stock"), which shares will be valued based upon a 20% discount, (replacing the 10% discount contained in the Original Proposal), from the weighted average sales price for Warren's publicly traded common stock for the period from April 1, 2007 to May 31, 2007 (instead of the period from May 1, 2007 to May 31, 2007 contained in the Original Proposal). 2. Warren has agreed to commence registration of the Warren Common Stock with the SEC during the third quarter of 2007, with the objective of having the shares registered before December 31, 2007, although the registration and the distribution of the shares may exceed this date.
Except as described above, in all other respects the information, terms and conditions reported about Warren's Original Proposal are unchanged.
These amendments to the Original Proposal were primarily made in consideration that there are wells owned by the five drilling programs that were not included in the "proved reserves" category as of December 31, 2006 as they are in the early stage of dewatering or were not producing at the time of the reserve reports.
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 water flood oil recovery programs in the Wilmington Units 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., is headquartered 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 such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the anticipated results or other expectations expressed in this news release. See "Risk Factors" in the Company's Annual Report on Form 10-K and other public filings.