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Warren Resources Completes the Acquisition of Natural Gas and Midstream Assets in the Washakie Basin, Wyoming From Anadarko



Warren Resources Completes the Acquisition of Natural Gas and Midstream Assets
in the Washakie Basin, Wyoming From Anadarko Petroleum

NEW YORK, Oct. 15, 2012 (GLOBE NEWSWIRE) -- Warren Resources, Inc.
(Nasdaq:WRES) announced today that it has closed the purchase and sale
transaction under the previously announced agreement to acquire certain
additional natural gas and midstream assets from subsidiaries of Anadarko
Petroleum Corporation ("Anadarko") in the Atlantic Rim Project area, Washakie
Basin, Wyoming. By exercising its preferential rights and closing this
transaction with Anadarko:

  * Warren acquired 79% of Anadarko's working interest in the Spyglass Hill
    Unit area within the Atlantic Rim Project, representing approximately
    37,142 net leasehold acres and an approximate 32.8% additional total unit
    working interest therein, for a purchase price of $11.4 million, which
    increased its working interest in the entire unit from 30.1% to 62.9%.
     With this acquisition, Warren's working interests in the three currently
    producing participating areas ("PA") increased as follows: (A) the Doty
    Mountain PA increased from approximately 40% to 73%; (B) the Sun Dog PA
    increased from approximately 42% to 67%; and (C) the Grace Point PA
    increased from approximately 45% to 86%.
     
  * Warren also acquired 26.5% of Anadarko's interest in the Catalina Unit
    area within the Atlantic Rim Project, representing approximately 1,121 net
    leasehold acres and an approximate 5.2% additional total unit working
    interest therein, for a purchase price of $0.7 million, which increased
    its working interest in the entire unit area from 16.9% to about 22%. With
    this acquisition, Warren's working interest in the currently producing
    Catalina Unit PA increased from approximately 8.0% to 12.5%.
     
  * Lastly, Warren acquired 100% of Anadarko's 50% interest in the gas
    gathering, compression and pipeline midstream assets within the Atlantic
    Rim Project for a purchase price of $4 million. The midstream assets
    consist of gathering and compression equipment and a 59 mile long pipeline
    that transports gas from the gathering systems throughout the Spyglass
    Hill Unit area to the Wyoming Interstate Company (WIC) interstate gas
    transportation pipeline.

As a result of the transaction, Warren's estimated proved developed reserves
in the Atlantic Rim increased by approximately 18.3 billion cubic feet.
Additionally, the acquisition will add natural gas production of about 7.8
million cubic feet per day. As a result, Warren acquired proved developed
reserves at a price of $0.65 per thousand cubic feet ("Mcf"), or approximately
$1,550 per flowing Mcf, of natural gas production.

Warren exercised its preferential rights to purchase Anadarko's interests
after Anadarko advised the Company it had entered into an agreement to sell
these assets to Double Eagle Petroleum Co. under a purchase and sale agreement
dated August 16, 2012. Warren financed the acquisition with cash-on-hand and
borrowings under its senior credit facility. Under the closing documents,
Anadarko also nominated Warren as the successor operator of the midstream
assets and the Spyglass Hill Unit, subject to obtaining the required votes
from the working interest owners and approval by the Bureau of Land
Management; both of which Warren anticipates receiving in the near future.

About Warren Resources

Warren Resources, Inc. is an independent energy exploration, development and
production company that uses advanced technologies to explore, develop and
produce domestic on-shore oil and natural gas reserves. Warren's activities
are primarily focused on oil in the Wilmington field in California and natural
gas in the Washakie Basin in Wyoming.

Forward-looking Statements

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 and adversely from the projections,
anticipated results or other expectations expressed in this news release,
including unexpected costs, the possibility that the ultimate quantity and
value of the estimated oil and natural gas reserves associated with the
acquisition actually differ from those contained in this release, the
estimates used in the valuation of the acquisition, including prices used in
calculating reserve values, inability to timely realize expected value from
the acquisitions, decisions by other working interest owners, the volatility
of oil and natural gas prices, the current productive capabilities of the
wells included in the acquisition varies from that disclosed, future demand
for oil and natural gas, the effect of our hedging activities, anticipated gas
gathering and processing rates and throughput volumes, changes in economic
conditions, regulatory changes, and other factors, many of which are beyond
our control. 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

CONTACT: Media Contact:
         David Fleming
         212-697-9660

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