Warren Resources Exercises Preferential Rights To Acquire Anadarko's Oil & Gas And Midstream Assets In The Atlantic Rim, Washakie Basin, Wyoming

NEW YORK, Sept. 4, 2012 (GLOBE NEWSWIRE) -- Warren Resources Inc. (Nasdaq:WRES) ("Warren" or the "Company") today announced that it has exercised its preferential rights to acquire additional oil, natural gas and midstream assets from subsidiaries of Anadarko Petroleum Corp ("Anadarko") in the Atlantic Rim Project area, Washakie Basin, Wyoming. Under the preferential rights exercise, Warren has agreed to acquire:
  • Up to 100% of Anadarko's working interest in the Spyglass Hill Unit area within the Atlantic Rim Project, consisting of approximately 47,015 net leasehold acres and an approximate 41.5% working interest therein, for a purchase price of approximately $14.4 million for all of Anadarko's interest;  
  • Up to 100% of Anadarko's working interest in the Catalina Unit area within the Atlantic Rim Project, consisting of approximately 4,232 net leasehold acres and an approximate 19.5% working interest therein, for a purchase price of approximately $2.6 million for all of Anadarko's interest; and  
  • All (100%) of Anadarko's 50% interest in the gas gathering, compression and pipeline midstream assets ("Midstream Assets") within the Atlantic Rim Project for a purchase price of $4 million. 

Warren elected to exercise its preferential rights to purchase Anadarko's interests after Anadarko advised the Company of an agreement to sell these assets to a third party. Depending upon the exercise of preferential rights to purchase the oil and gas assets held by other working interest owners in the Spyglass Hill and Catalina Units, the amount of working interests to be acquired by Warren and the purchase price to be paid by Warren could be reduced proportionately. The effective date of the transaction is anticipated to be August 1, 2012 with the closing expected to occur on or about September 27, 2012. Upon the resignation of Anadarko as the current Operator, the Company anticipates it will become the successor Operator of the Spyglass Hull Unit and the Midstream Assets.

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