Investing in the Future of Energy Warren Resources IPAA OGIS New York Presentation April 7, 2014
1. Company Overview Investing in the Future of Energy NASDAQ (WRES) 3
Company Overview Financial Profile Asset Profile Ticker: NASDAQ: WRES Estimated Proved Reserves1: 33.7 MMBoe Share price (as of 4/3/14): 4.72 % Oil1: 48% Shares Outstanding1,2: 72.9 MM % Total PDP and PDNP1: 64% Market…
Areas of Operations California Properties Wyoming Properties Wilmington Field in the Los Located in Washakie Basin Angeles Basin Commercial CBM development 3rd largest U.S. oilfield Waterflood oil recovery 2012 acquisition of…
Reserves Well Balanced Between Oil & Gas Asset Summary Oil Reserves* Estimated Proved Reserves of 33.7 MMBoe as of 18 16 December 31, 2013 14 12 48% oil, 64% proved developed (PDP/PDNP) MMBbls of Oil 10 8 Year-end 2013…
Significant Inventory of Drilling Locations Wilmington Field, California: 165 Gross Locations in California 150 gross identified additional undeveloped locations* Leroy represents 6.5 years of drilling Pine inventory*** 15 NWU…
Experienced Senior Management Team Joined Warren Resources in December 2012 as Chairman and CEO Over 25 years of significant experience in the oil and natural gas industry Philip A. Epstein Chairman & CEO In 1992, participated in…
Business Strategy Optimize Operations on Current Assets Grow production from current low-risk, long-life assets Control operational and development costs; increase efficiencies Continuous technical analysis of data collected from…
Recent Milestones Sept. 2012: Acquired Wyoming E&P and midstream assets from Anadarko Petroleum Dec. 2012: Philip A. Epstein Appointed Chairman & CEO Dec. 2012: Marcus Rowland Appointed to the Board of Directors April 2013:…
2014: Production Guidance and Capex Budget 2014 Capex by Area 116 million 2014 capital expenditure budget California: 77 million; 47 well drilling program WTU: 17 new producing wells & 5 injectors Wyoming 34% NWU: 6 new producing…
Strong Production Growth Through Cycles A track record of growing production while lowering costs Historical Annual Production* (MBOE) Historical Cost Structure** (/BOE net) * 2014 production is estimated based on midpoint of…
2. Operations Overview Investing in the Future of Energy NASDAQ (WRES) 13
California Operations Investing in the Future of Energy NASDAQ (WRES) 14
California: Wilmington Townlot Unit Investing in the Future of Energy NASDAQ (WRES) 15
California: Existing WTU Cellar WTU Centralized Drilling and Production Cellars Warrens drilling cellars received the IOGCC 2011 Environmental Stewardship Award for independent oil companies. Investing in the Future of Energy…
California: Wilmington Field Overview Salt Lake The Wilmington Field Beverly Hills Los Angeles 3rd largest U.S. oilfield Chevice Hills Montebello Bandin Englewood The Wilmington Field has Produced over 2.5 billion Playa Del Rey…
California: Wilmington Development Strategy Continue horizontal / sinusoidal development Producing Zones Drill highly targeted wells in 5 stacked pay zones from 2,600 to 6,000 containing 14 reservoirs Projecting per well IRRs of…
California: WTU Ford Formation WTU Ford Type Curve 60 Year Bbl/d Oil Decline 0 55 50 1 2 33 24 40% 27% 3D View of Ford well path 40 3 20 17% 4 17 15% Bbl/d Oil 30 20 EUR (Gross): 177 MBO 10 0 0 1 2 3 4 Years…
California: Leroy Pine Project Acquired 62.5% working interest in Leroy Pine Reactivation Project in August 2013 Located in the Santa Maria Valley Oil Field in Santa Barbara County, CA Significant well control Unocal drilled 24…
California: Leroy Pine Type Curves Completed initial 3 producer well drilling Leroy Pine Type Curves program on December 7, 2013 100 Planning to complete the wells in 90 High Case Bbl/d Oil Decline late 1Q 2014 High Low High Low…
Rockies Operations Investing in the Future of Energy NASDAQ (WRES) 22
Wyoming: Atlantic Rim Operations Overview Atlantic Rim Project Commercial CBM production established by Williston Warren in 2002, Anadarko operator through end of 2012 Warren Approved as operator of the Spyglass Big Hill Unit in…
Rockies: Washakie Basin Stratigraphic Column Late Cretaceous aged coals Lewis Shale Three coal bearing sections Top of Mesa Verde Almond Pine Ridge Almond Section Allen Ridge Average net coal thickness is Pine Ridge Section…
Wyoming CBM: Type Curve Wyoming CBM Type Curve (1.0 Bcf) The 27 CBM wells 2013 drilled 500 in 2013 were Warrens first 450 EUR (Gross): 0.8 - 1.16 Bcf Natural wells drilled as operator Gas 400 Year Mcf/d 350 0 9 Cumulative…
Wyoming Deep Potential: Producing Zones Atlantic Rim Zones Owns certain deep rights in a portion of the Atlantic Rim area CBM current 71,000 net acres potentially Warren production prospective for oil bearing formations…
Wyoming Deep Potential: Regional Activity *** ***Southwestern Energy recently acquired Quicksilvers and SWEPI LPs (Royal Dutch Shell) 300,000 net acre position in the Sand Wash Basin Investing in the Future of Energy NASDAQ…
3. Financial Overview Investing in the Future of Energy NASDAQ (WRES) 28
Capitalization / Liquidity Low leverage and significant dry powder provides Warren flexibility to be opportunistic with acquisitions Current Capitalization & Liquidity As of (US millions, except per unit amounts) 12/31/13 Low…
4. Investment Conclusion Investing in the Future of Energy NASDAQ (WRES) 31
Key Reasons to Own Warren Resources Focused management and experienced technical team New leadership focused on maximizing performance from current operations and while accelerating growth Extensive experience in horizontal drilling,…
Upcoming Potential Catalysts Catalyst Comments Production Growth: WTU Ford: 8 production wells and 2 water injectors planned in 2014; Warrens initial Ford tests in 2011 were positive and offset operator OXY had significant success…
5. Appendix Investing in the Future of Energy NASDAQ (WRES) 34
Drilling Inventory: Total Gross Potential Locations Area of Operation Gross Locations Future upside to current production and reserves with large Probable, Possible inventory of unproved undeveloped drilling locations PUD &…
Large Resource Potential Upside 1 Net Resource Potential Oil Resource Potential Upside2 Area of Operation (in MMBoe) +0.7 Low End High End +8.1 WTU Tar 0.9 1.4 16.1 Ranger 0.1 0.2 MMBbls of Oil U.Terminal 4.9 6.8 Ford…
California: 2014 Development Plan Total capital expenditure budget of 77 million for California in 2014 82% allocated to drilling and completion activity Wilmington Townlot Unit Capital budget of 38.7 million 30.8 million drilling…
Wyoming CBM: 2014 Development Plan Total 39 million capital expenditure budget for Wyoming CBM in 2014 84% allocated to drilling and completion activity Wyoming CBM 2014 Wyoming CBM 2014 Capital budget of 38.9 million Capital…
EBITDA Reconciliation to Net Income Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2013 December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 (in millions) (in millions) (in millions) (in…
Year-end 2013 SEC PV-10 For the Year Ended December 31, 2013 PV-10 Reconciliation (in 000s) Proved developed 379,310 Proved undeveloped 124,396 PV-10 Value 503,706 Less: future income taxes, discounted at 10% 28,705…
Warren Resources, Inc. Please visit our website: www.warrenresources.com Investing in the Future of Energy NASDAQ (WRES) 42
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