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NEW YORK, March 6, 2013 (GLOBE NEWSWIRE) -- Warren Resources, Inc. (Nasdaq:WRES) today reported its fourth quarter and full-year 2012 financial and operating results. For the year ended December 31, 2012, Warren reported net income of $15.5 million, or $0.22 per diluted share, compared to net income of $21.6 million for the year in 2011, or $0.30 per diluted share.
For the fourth quarter of 2012, Warren reported net income of $4.0 million, or $0.06 per diluted share, compared to net income of $3.0 million for the fourth quarter of 2011, or $0.04 per diluted share.
In announcing the results, Philip A. Epstein, Chairman and Chief Executive Officer, commented, "We are in a strong financial position thanks to our continued drilling success in California. This financial strength will be helpful in implementing our new strategy of growing the Company through acquisitions and joint ventures. As a result of drilling 17 new oil wells in California, our proved oil reserves increased by 9.5% during 2012 to 16.4 million barrels. Assuming $80 per barrel average realized oil pricing in California (although current Midway Sunset pricing is $100 per barrel), we anticipate that the nine Tar formation wells drilled in 2012 will payout in approximately one year, while the Ranger and Upper Terminal formation sinusoidal wells will payout in 1 to 2 years. Warren exited the year with a production rate of over 3,500 gross (2,900 net) barrels of oil per day ("BOPD") from our two Wilmington Field units.
I am also pleased to report that we began our 2013 drilling program in our Wilmington Townlot Unit ("WTU") on March 1, 2013. As we announced earlier, our plan for 2013 is to drill 13 new oil wells and 3 water injection wells in the WTU. In our adjacent North Wilmington Unit ("NWU"), we plan to drill 4 new oil wells and 3 injection wells during 2013. While growing our oil production and reserves at the WTU and NWU and our natural gas production in the Washakie Basin are priorities, we are now in a position to consider attractive acquisitions in basins where we can implement our strengths which include enhanced oil recovery, advanced horizontal drilling expertise and Rocky Mountain natural gas development."