Warren Resources Says Production Fell In 3Q

NEW YORK (AP) — Oil and gas operator Warren Resources Inc. says its third-quarter oil production was 5 percent lower than a year ago and flat with second-quarter levels as low energy prices have reduced the company's spending on drilling and infrastructure.

The company said Tuesday it produced the equivalent of 2.4 billion cubic feet of natural gas, down from 2.5 billion cubic feet a year ago. Oil production was 226,000 barrels, down from 263,000 barrels a year earlier, with declines in the Wilmington oil field near Los Angeles.

The company said it doesn't expect to drill new wells in its two developments there the rest of this year, however, with oil prices recently edging higher, it has been gradually returning some off-line wells to production.

Warren said its third-quarter natural gas production rose 12 percent year-over-year to 1 billion cubic feet. That's up 9 percent from the second quarter, but the company said production was curtailed due to low natural gas pricing which limited infrastructure spending.

Warren said it expects to produce the equivalent of 2.25 billion to 2.51 billion cubic feet of natural gas in the fourth quarter. That includes 225,000 to 235,000 barrels of oil and 900 million to 1.1 billion cubic feet of natural gas.