NEW YORK, Oct. 13, 2009 (GLOBE NEWSWIRE) -- Warren Resources, Inc. (Nasdaq:WRES) today announced its third quarter 2009 production results and provided an operational and 2009 guidance update.

Operations Update

Warren announced that oil and gas production for the third quarter of 2009 was 2.4 billion cubic feet equivalent ("Bcfe"), which was the same production level as the second quarter of 2009, and a decrease of 5% compared with third quarter 2008 production of 2.5 Bcfe. During the third quarter of 2009, oil production was 226,000 barrels in comparison to 237,000 barrels in the second quarter of 2009, and 263,000 barrels in the third quarter of 2008. The Company produced 1.0 billion cubic feet ("Bcfe") of natural gas during the third quarter of 2009, an increase of 9% over the second quarter of 2009, and an increase of 12% over the third quarter of 2008.

Wilmington Oil Field in the Los Angeles Basin in California

Production in the Wilmington Townlot Unit ("WTU") averaged 2,548 gross barrels of oil per day ("BOPD") during the third quarter of 2009 compared to 3,100 gross BOPD for the third quarter in 2008. Warren owns an approximate 98.9% working interest and an 81.0% net revenue interest in the WTU.

Oil production from Warren's North Wilmington Unit ("NWU") averaged 460 gross BOPD in the third quarter of 2009, compared to an average of 520 gross BOPD for the same period in 2008. Warren owns a 100% working interest and an 84.6% net revenue interest in the NWU.

Warren's capital expenditure forecast does not contemplate drilling additional wells in the WTU or NWU during 2009. Additionally, before oil prices recently increased, the Company did not aggressively return previously off-line wells to production. However, Warren has been gradually returning certain wells to production during the past few weeks that were previously off-line for maintenance and other reasons.

As earlier reported, the South Coast Air Quality Management District ("AQMD") is continuing its review of and response to public comments concerning its issuance of a Notice of Intent to Adopt a Negative Declaration under the California Environmental Quality Act for our gas management, handling and disposition project to be implemented in the WTU. Additionally, on October 11, 2009, the Governor of California signed Bill No. SB 827, with an effective date of January 1, 2010, which generally, among other things, reinstates the authority of the AQMD to issue emission reduction credits to essential services as well as small businesses. This new law should enable the AQMD to issue our pending gas management, handling and disposition permits at the WTU upon adoption of the Negative Declaration.