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RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc.

Warren Resources Inc. · Jun 4, 2012 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 1
    2012 RBC Capital Markets Global Energy & Power Conference June 4, 2012 New York City
  2. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 2
    Areas of Operations Warren Resources, Inc. Proved Net Reserves as of 12/31/11: CASPER NEW 22.3 mmboe (15 oil, 7.3 natural gas) YORK 46% oil reserve growth in 2011 LONG BEACH Current Average Net Production: 5,000 boepd (3000 bopd…
  3. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 3
    California: Wilmington Oil Field Overview Los Angeles Warren Property Highlights Within the 3rd largest U.S. oilfield Shallow waterfloods in the Tar, Ranger and Upper Terminal formations 9- 17 gravity oil Deeper Ford…
  4. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 4
    Wyoming: Atlantic Rim CBM Gas Warren Property Highlights Spyglass Hill Mega Unit: 113,000 gross acres held by production 25-well per year Unit drilling commitment for 10 years Spyglass Hill 1 Bcf estimated EUR per 80 acre Mega…
  5. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 5
    Atlantic Rim Producing Zones Atlantic Rim Spyglass Hill Mega Unit W Mesaverde Outcrop E - 2,000' - 6,000' - 10,000' CBM Down Dip Productive Limits Ten Miles NASDAQ: WRES 5
  6. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 6
    Reasons to Invest Oil-weighted producer: 80% by revenue 22% CAGR 6-year oil production growth Top quartile Total Shareholder Return vs Peers over past 3 years 60% rate of return targeted for 2012 new wells Attractive Oil Assets in…
  7. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 7
    Business Strategy Production & Reserves Growth 6-8 year oil drilling inventory in CA with 25-30 mmbo net reserve additions potential 46% oil reserve growth in 2011 20+ year gas drilling inventory in Wyoming Fund 2012 capex of…
  8. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 8
    WTI-CMS Historical Prices WTI-CMSHistorical WTI-CMS Historical Prices Prices 120 WTI CMS* 115 110 105 Price per Bbl (Rolling 30 Day Average) 100 95 90 85 80 75 70 2/16/11 3/16/11 4/16/11 5/16/11…
  9. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 9
    California: Recent Oil Production Warren California Oil Production 4,000 3,500 3,000 Oil 2,500 Oil bpd 2,000 1,500 1,000 500 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 NASDAQ: WRES 9
  10. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 10
    Wyoming: Recent Gas Production Warren Production 16,000 14,000 12,000 10,000 MCFD 8,000 6,000 4,000 2,000 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 NASDAQ: WRES 10
  11. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 11
    California Oil Development WTU Redevelopments since 1937 Tar Historical BOPD Description 45 horizontal wells drilled, 30-40 pending Warren succeeded in redeveloping 2000 bopd the Tar interval with targeted Oil Cut horizontal…
  12. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 12
    Project Development Process Raw Data: Quality Control Process Modeling 1500 Wells Modernization Geological Modeling Petrophysical Evaluation Geostatistical Evaluation Seismic Interpretation Internal Peer Review (available late…
  13. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 13
    California: Wilmington Townlot Unit NASDAQ: WRES 13
  14. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 14
    California Oil: Environmentally Friendly WTU CENTRALIZED DRILLING AND PRODUCTION CELLARS * Warrens drilling cellars received the IOGCC 2011 Environmental Stewardship Award for independent oil companies. NASDAQ: WRES 14
  15. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 15
    California Oil: Environmentally Friendly Integration into the community. NASDAQ: WRES 15
  16. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 16
    California Oil: Environmentally Friendly Warren Rig 1 is sound proofed completely enclosed. NASDAQ: WRES 16
  17. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 17
    California Oil: Wilmington Field Producing Zones SW Tar NE Ranger Terminal - 3000' Union Pacific Ford/237 - 6000' Schist Productive Basement - 9000' Limits One Mile NASDAQ: WRES 17
  18. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 18
    California Oil: Reservoir Modeling and Drilling Technology Well Placement Utilizing State-of-the-Art LWD Technology NASDAQ: WRES 18
  19. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 19
    California Oil: Tar Reservoir Tar Reservoir Horizontal Development Cross-section showing saturations in NW area of Tar NASDAQ: WRES 19
  20. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 20
    Targeted Sinusoidal Drilling Actual NWU Ranger well path shown Shale Sand Well path 180 amplitude Sinusoidal well shown above NASDAQ: WRES 20
  21. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 21
    California Oil: Tar Type Well Illustrative Economics (1) IRR 80 NYMEX = 100+% NYMEX Oil Price 80 NYMEX Price Required for 45 10% ROR Sales adjustment 10% Realized Price (Boe) 72 LOE, Gathering & Transportation (17.50 )…
  22. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 22
    2012 Milestones: What to Watch 6 California DOGGR injection well permits received in 1Q12 Improved reservoir pressure maintenance will shallow production decline 20 California oil wells to be drilled in 2012, plus 9 water injections…
  23. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 23
    Strong Assets & Significant Accomplishments World Class Assets 25-30 mmbo oil reserves potential California 250-300 bcf gas potential in Wyoming Strong Growth Track Record 22% CAGR 6-year oil growth rate 60-100% rate of return…
  24. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 24
    June 2012 Corporate Presentation Financial Highlights
  25. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 25
    Historical Financial Performance Year Ended Year Ended Year Ended Year Ended 2011 2010 2009 2008 Total production (MBOE) 1,748 1,744 1,600 1,499 Adjusted EBITDAX 50,511 52,061 25,581 66,363 Balance Sheet Information Cash…
  26. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 26
    Peer Valuations Enterprise Value per Proved Developed BOE 600.00 / Proved Developed BOE 518.69 500.00 400.00 300.00 200.00 171.61 109.15 100.00 91.72 39.31 42.18 47.74 48.67 22.38 24.54 31.74 0.00 WRES33%…
  27. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 27
    Peer Analysis: 2-Year F&D 100% /BOE 19.74 75% 50% 9.30 25% Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * Costs incurred divided by the sum of extension, discoveries, revisions and…
  28. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 28
    Peer Analysis: TTM OPEX/G&A 70.00 60.00 100% 50.00 40.00 /BOE 30.00 26.86 75% 26.15 50% 20.00 25% 10.00 0.00 Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * (OPEX + G&A) divided…
  29. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 29
    Peer Analysis: TTM Capital Efficiency 400% 350% 100% 300% 75% 275% 250% 50% 200% 202% 150% 100% 25% 50% 0% Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * (TTM EBITDA divided by TTM…
  30. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 30
    Peer Analysis: Debt / Total Cap 100% Concentrated effort to reduce debt 90% 100% 80% 70% 60% 50% 75% 40% 41% 50% 30% 34% 20% 25% 10% 0% Warren Resources Peer Group Average Source: Bloomberg NASDAQ: WRES 30
  31. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 31
    Debt / Total Cap 60% 50% 50% 42% 40% 33% 34% 30% 20% 10% 0% 12/31/2008 12/31/2009 12/31/2010 12/31/2011 Source: Bloomberg NASDAQ: WRES 31
  32. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 32
    Debt-Adjusted Production Growth Per Share NASDAQ: WRES 32
  33. RBC Capital Markets 2012 Global Energy Power Conference – Warren Resources Inc. – slide 33
    Warren Resources, Inc.

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