Reasons to Invest in Warren Resources, Inc. High quality asset portfolio offers low risk development: Unitized Wilmington Oil Field Units in California : 45 MMBO potential oil reserves (10.2 MMBO proved) 250 horizontal oil wells…
Areas of Operations Warren WarrenResources, Resources,Inc. Inc. Proved Reserves as of 12/31/10: Proved Reserves as of 9/30/09: 10.2 MMBO 137 BCFE and 68.2 BCF Average Net Production Daily Production (6/30/09):(Q1 2011):…
Operations Overview 22.4 MMBOE of Net Proved Reserves with a PV-10 of 408 million at December 31, 2010 using 2010 year end Nymex Strip pricing of approximately 93.00 oil and 4.28 - 5.15 gas Over 80% of reserves are PDPs 10.2 MMBO…
Execution 2011 Strong current realized prices Over 78% of revenue from oil California Midway Sunset currently trading at a premium to Nymex Cash flow aligned with capital Expect to fund 2011 Capex primarily with cash flows from…
Business Strategy Exploit existing properties through the drill bit Drill additional Tar horizontal oil wells and Upper Terminal sinusoidal proof-of-concept horizontal wells in the J and Hx oil sands and test the ranger formation in…
Experienced Operating Team Years Operating Name Title Experience Regional Focus Area of Expertise Norman Swanton President, Chairman and Chief 40 Corporate Executive Executive Officer Tim Larkin Executive Vice President and Chief…
Focused Operations - Wilmington Oil Field
Wilmington Oil Field, California Overview History Third largest oil field in the United States, having produced over 3.0 billion barrels of oil from 9.0 billion barrels OOIP Approximately 300 MMBO of estimated oil reserves have…
Wilmington Ownership and Status Wilmington Townlot Unit (WTU) North Wilmington Unit (NWU) 98.90% WI, 80.99% NRI 100% WI, 84.61% NRI Unitized for water flood in 1972 by Exxon Unitized for water flood in 1977 by Sunoco 1,440 acres…
Wilmington Historical Production Warren California Oil Production 4,000 50,000 Oil Mid-tech: Tar well drilling with MWD 45,000 3,500 Water and 2-D Petra software 40,000 3,000 35,000 Water bpd 2,500 Oil bpd Low-tech:…
Geology - Producing Zones and Geometries SW Tar NE Ranger Terminal - 3000' Union Pacific Ford - 6000' Schist Productive Limits Basement - 9000' One Mile 13
Wilmington Oil Field, Los Angeles Basin Tar Formation Wells Illustrative Drilling Illustrative Economics (1) and Completion Costs (1) BOE EUR (gross in 000s) 148 NYMEX Oil Price 80 NRI 81% Sales adjustment 10% EUR (net in 000s) 121…
Upper Terminal - Producing Reservoirs 15
MODEL FOR ENVIRONMENTALLY SOUND OPERATIONS 16 WTU CENTRALIZED DRILLING AND PRODUCTION CELLARS
Drilling Technology Well Placement Utilizing State-of-the-Art LWD Technology Azimuthal Deep Resistivity High deviated well conditions Optimal Well Bore Placement Risk of exiting reservoir Risk of drilling through the OWC…
Accurate Well Placement: Warrens 4 Types Tar Type: Typical horizontal wells placed high in reservoir to avoid water below Ranger and Terminal Type: Sinusoidal wells in thick and thin sand bed packages to maximize exposure to pay…
Development Strategy WTU Redevelopments since 1937 Description Tar Historical BOPD Warren succeeded in redeveloping the Tar interval with targeted directional drilling, increasing production to 2,000 BOPD, equaling the primary…
Atlantic Rim CBM Field Operations
Atlantic Rim CBM Washakie Basin Eastern rim of the Washakie Basin, Wyoming Atlantic Rim Project comprising 121,205 gross (64,084 net acres) Development of acreage in preferential CBM drilling fairway through a 50/50 joint venture…
Atlantic Rim CBM Type Curve TYPE Atlantic WELL Rim PROFILE Type Well Profile 10000 1000 100 10 1 0 24 48 72 96 120 144 168 192 216 240 Time (months) Gas Rate (Mcfd) Water Rate (Bpd) Estimated ultimate…
Sun Dog Federal Unit Daily Gas Production Sun Dog Daily Production SUN DOG DAILY PRODUCTION 25,000 140,000 20,000 120,000 100,000 15,000 MCFD 80,000 BWPD 10,000 60,000 40,000 5,000 20,000 0 0 Jan-03…
Doty Mountain Unit Daily Gas Production Doty Mountain Daily Production DOTY MTN DAILY PRODUCTION 16,000 100,000 14,000 80,000 12,000 10,000 60,000 BWPD MCFD 8,000 40,000 6,000 4,000 20,000 2,000 0 0…
Niobrara Oil Shale Potential Warren owns deep rights below its Atlantic Rim project which includes an approximate 80,000 net acre position that is potentially prospective for the Niobrara Shale. The acreage is located in the eastern…
Financial Overview
Historical Financial Performance ( in thousands) Three months ended 3/31 Three months ended 3/31 Year Ended 2011 2010 2010 2009 Production: Natural gas (MMcf) 1,177 1,072 4,652 3,885 Oil (MBbls) 210 223 969 953 Total production…
Existing Hedges Price per Date Product Type Contract Period Volume Mcf or Bbl Entered Into Crude Oil Swap 01/01/11 - 12/31/11 840 Bbl/d 61.80 Feb-09 Crude Oil Costless Collar 01/01/11 - 12/31/11 700 Bbl/d 70.00 - 101.00 Oct-10…
Peer Valuations Enterprise Value per Proved Developed BOE 300.00 / Proved Developed BOE 264.38 250.00 200.00 144.58 150.00 127.31 100.00 38.12 40.53 51.19 50.00 35.78 31.87 21.61 21.78 - WRES RAM AREX VQ CWEI…
Warrens Development Strategy Summary World Class Assets: stacked pay in 16 oil reservoirs on two 100% owned Unitized leases in the 3rd largest oilfield in the U.S. Significant additional EOR potential using ASP combined with huge…
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