NEW YORK, Feb. 6, 2013 (GLOBE NEWSWIRE) -- Warren Resources, Inc. ("Warren" or the "Company") (Nasdaq:WRES) today announced 2012 estimated proved oil and gas reserves, 2012 production and provided its 2013 capital budget.
Warren's 2012 net oil and gas production was 2,028,000 barrels of oil equivalent ("BOE"), or an average of 5,541 BOE per day. Oil production for 2012 totaled 1,109,000 net barrels, or an average of 3,030 barrels of oil per day ("BOPD"). This represents a 22% increase from the 911,000 net barrels of oil produced in 2011. Warren produced 5.5 billion cubic feet ("Bcf") net of natural gas in 2012, compared to 5.0 Bcf net of natural gas in 2011. The 2012 year-end oil production exit rate was 3,574 gross (2,910 net) BOPD, compared to compared to a year-end 2011 exit rate of 3,475 gross (2,830 net) BOPD. The 2012 year-end gas production exit rate was 53,800 gross (20,600 net) million cubic feet per day ("Mmcfd"), compared to a 2011 year-end exit rate of 61,800 gross (14,200 net) Mmcfd.Warren's total fourth quarter 2012 net oil and gas production was 580,000 BOE, or an average of 6,303 BOE per day. Oil production for the fourth quarter of 2012 totaled 273,000 net barrels, or an average of 2,966 BOPD. This represents an 11% increase from the 247,000 net barrels of oil produced in the fourth quarter of 2011. The Company produced 1.8 Bcf net of natural gas in the fourth quarter of 2012, compared to 1.3 Bcf net of natural gas in the fourth quarter of 2011. "Warren's 2012 production of both oil and gas represented solid growth over 2011," said Philip A. Epstein, Chairman and CEO. "In addition, Warren elected to not drill in California during the fourth quarter of 2012, while we learned from new well performance and planned our best wells for 2013. Our 2012 California production results have demonstrated the reliable, long-lived nature of our Wilmington oil assets, as reflected in the Company's 9.5% increase in proved oil reserves for the year-end 2012. Our gas production and reserves benefited from a timely, lower cost acquisition from Anadarko Petroleum in our south Wyoming Atlantic Rim coalbed methane project," commented Mr. Epstein. "In California, we invested in significant facility upgrades during 2012 that will allow for planned oil production expansion in both our Wilmington oil field units. In Wyoming, we assumed operatorship of the Spyglass Hill Unit and are now planning cost savings and operational efficiencies. We are also continuing to evaluate the best options for our deep rights and natural gas assets in Wyoming."