Warren Resources, Inc.
WRES announced today that it entered into a definitive Purchase, Sale
and Exploration Agreement to acquire an undivided 62.5% working interest in
the Leroy Pine Project area consisting of various oil and gas leases covering
approximately 1,610 acres of land. The Leroy Pine Project is located within
the Santa Maria Valley oil field in Santa Barbara County, California. This
area was developed by Unocal between 1937 and 1994. Unocal drilled 24 wells
that produced a total of 6 million barrels of oil before exiting the project.
Warren anticipates drilling 19 producing wells targeting the oil zones of the
Monterey formation and 2 disposal wells. The Company's estimated net
acquisition, drilling and development costs are approximately $16 million.
Warren expects to commence drilling operations in October 2013 and begin
production operations in January 2014. Warren will be the operator of the
Leroy Pine Project.
The Leroy Pine Project represents Warren's entry into the Monterey oil
formation in California. By U. S. Energy Department estimates, the Monterey
oil shale formation accounts for approximately two-thirds of the oil shale
reserves in the United States.
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