Profile: Warren Resources Inc (WRES.OQ)
6 Dec 2013
Warren Resources, Inc. (Warren), incorporated on May 20, 2004, is an independent energy company engaged in the exploration, development and production of domestic onshore crude oil and gas reserves. The Company focuses primarily on the exploration and development of its waterflood oil recovery properties in the Wilmington field within the Los Angeles Basin of California, and its coalbed methane (CBM) natural gas properties located in the Rocky Mountain region. The Company's properties are primarily located in California, Wyoming, New Mexico, North Dakota and Texas. As of December 31, 2012, it owned natural gas and oil leasehold interests in approximately 124,587 gross (94,140 net) acres, approximately 85% of which are undeveloped. As of December 31, 2012, Warren had interests in 447 gross (299 net) producing wells and are the operator of record or actively participate in the management and operations for 92% of these wells. Warren E&P, Inc. is its wholly owned subsidiary.
On October 9, 2012 (effective August 1, 2012), the Company acquired certain additional natural gas and midstream assets from subsidiaries of Anadarko Petroleum Corporation (Anadarko) in the Atlantic Rim Project in the Washakie Basin. It acquired 79% of Anadarko's 36.5% working interest (28.8%) in the Spyglass Hill Unit. The Company also acquired 26.5% of Anadarko's interest in the Catalina Unit area, which increased its working interest in the entire unit area to 22%. Lastly, the Company acquired 100% of Anadarko's 50% interest in the gas gathering, compression and pipeline midstream assets within the Atlantic Rim Project.
The Company’s Wilmington Townlot Unit (WTU) is located in the Wilmington field within the Los Angeles Basin of California. As of December 31, 2012, its WTU had produced more than 149 million barrels of oil from primary and secondary production. As of December 31, 2012, Warren held an approximate 98.9% undivided working interest in the WTU. In December 2012, it averaged 3,240 barrels of oil per day gross production in the WTU. As of December 31, 2012, there were 118 gross (117 net) producing wells. The North Wilmington Unit (NWU) is located in the Wilmington oil field adjacent to its existing WTU. As of December 31, 2012, the Company owned a 100% working interest and an approximate 84.7% net revenue interest in the NWU, including existing wells, certain equipment and certain surface properties. In December 2012, it averaged 356 barrels of oil per day gross production in the NWU.
Rocky Mountain Projects in the Washakie Basin
The Washakie Basin is located in the southeast portion of the Greater Green River Basin in southwestern Wyoming. As of December 31, 2012, Warren owned 114,737 gross (89,014 net) acres for CBM development in this area, of which 75,841 net acres are undeveloped. This area consists of approximately 125 gross identified drilling locations primarily on 80-acre well spacing. In addition to this acreage, the Company has the rights to drill and develop the deeper, conventional formations (deep rights) in some, but not all, of the acreage in the Atlantic Rim Area. As of December 31, 2012, it owned approximately 61,464 gross (50,083 net) undeveloped acres of deep rights inside the area of mutual interest (AMI) with Anadarko, and approximately 28,660 gross (21,708 net) undeveloped acres of deep rights outside the AMI, for a total of 90,124 gross (71,791 net) undeveloped acres in the entire Atlantic. Warren’s Atlantic Rim project consists of approximately 113,275 gross (87,746 net) acres on the eastern rim of the Washakie Basin. As of December 31, 2012, it had drilled a total of 383 wells. The Spyglass Hill Unit covers approximately 113,000 gross acres.
As of December 31, 2012, the Sun Dog unit consisted of 113 wells. In December 2012, production from 110 producing wells averaged approximately 14,730 thousand cubic feet per day of gas and 71,000 barrels per day of water. The Doty Mountain unit consists of 59 CBM wells on 80-acre spacing. In December 2012, these wells were producing approximately 11,720 thousand cubic feet per day of natural gas and 25,000 barrels per day of water. As of December 31, 2012, it owned an approximate 73% working interest in the wells drilled in the initial PA of the Doty Mountain unit. In December 2012, gross production from the Catalina unit averaged approximately 18,200 thousand cubic feet per day of natural gas and 50,000 barrels per day of water. As of December 31, 2012, Warren owned certain deep rights below a portion of the Atlantic Rim CBM Project, which include an approximate 72,000 net acre position that is prospective for hydrocarbon production from. The acreage is primarily located in the southern portion of the Eastern Washakie Basin in Wyoming and is adjacent to the Colorado border.
Warren Resources Inc
1114 Avenue of the Americas
NEW YORK NY 10036