Key Developments For Warren Resources, Inc.
Warren Resources, Inc. (WRES.O) (Consolidated Issue listed on NASDAQ Global Market)
Warren Resources, Inc. Announces Pricing of Common Stock Offering
Warren Resources, Inc. announced that it has priced its previously announced public offering of 11,775,000 shares of common stock, at a price of $2.60 per share, for proceeds of $30,615,000 before underwriting discounts and offering expenses. The transaction is expected to close on or about October 28, 2009. BMO Capital Markets Corp. and RBC Capital Markets Corporation are acting as the joint book runners for the offering. The Company intends to use the net proceeds from the offering for general corporate purposes, including resumption of development activities in California and Wyoming, reduction of debt and working capital.
Warren Resources, Inc. Announces Commencement of Public Offering of Common Stock
Warren Resources, Inc. announced that it is commencing an offering of shares of its common stock in a public offering. BMO Capital Markets and RBC Capital Markets are acting as the joint book runners for the offering. The offering is being made pursuant to a shelf registration statement filed with the Securities and Exchange Commission dated September 28, 2009, which became effective on October 2, 2009.
Warren Resources, Inc. Updates FY 2009 Production Guidance; Comments On Q4 2009 Production Guidance
Warren Resources, Inc. updated fiscal 2009 guidance for production of oil to be in the range of 941 - 951 Mbbl, Gas to be in the range of 3,765 - 3,965 MMcf and Gas Equivalent to be in the range of 9,411 - 9,671 MMcfe. For the fourth quarter of 2009, the Company expects production of oil to be in the range of 225 - 235 Mbbl, Gas to be in the range of 900 - 1,100 MMcf and Gas Equivalent to be in the range of 2,250 - 2,510 MMcfe.
Warren Resources, Inc. Announces Credit Facility Borrowing Base Reaffirmed At $120 Million
Warren Resources, Inc. announced that the syndicate of lenders underwriting the Company's $250 million senior secured credit facility (Credit Facility) has reaffirmed the conforming borrowing base at $120 million as a result of completing the Spring 2009 semi annual redetermination. The next borrowing base redetermination is scheduled for October 2009. The Company currently has $115 million drawn on the Credit Facility. In connection with reaffirming the conforming borrowing base, the Company and its lenders have amended the Credit Facility (the First Amendment) to (i) increase the margins on LIBOR based borrowings from a range of 1.25% to 2.0% to a range of 2.75% to 3.50% (depending on the then current borrowing base usage), (ii) increase the margins on Base Rate borrowings from a range of 0% to 0.75% to a range of 1.50% to 2.25% (depending on the then current borrowing base usage), (iii) add a floor to the margin rate of all LIBOR based loans to 3.50% for the next six months, and (iv) increase the unused commitment fee rate from a range of 0.20% to 0.50% to a flat rate of 0.50%. The First Amendment also gives the Company the right for the next six months, if it so chooses, to obtain up to a $30 million financing secured by a second mortgage lien on its assets on terms acceptable to each of the Credit Facility lenders. The Company is in compliance with all of its debt covenants under the Credit Facility.
Warren Resources, Inc. Announces Filing of Universal Shelf Registration
Warren Resources, Inc. announced that it has filed a universal shelf registration statement with the Securities and Exchange Commission (SEC) to replace its previous shelf registration statement, which expired in December 2008. and when the registration statement is declared effective by the SEC, the Company may, from time to time, issue up to an aggregate of $200 million of equity, debt or other types of securities through one or more methods of distribution. Although the Company does not have any current commitments or intentions to sell securities, the terms of any future offering would be established at the time of offering subject to market conditions. Any offering of securities covered by the universal shelf registration statement will be made only by means of a written prospectus and prospectus supplement.
