Warren Resources, WRES $3.93

[Bobwins]

Warren Resources is an established producer working one of the oldest fields in the country, the Wilmington in Southern California. Some of the wells have to be drilled in urban areas of Los Angeles and surrounds.

They are currently at 4800boepd. Using new technology, they believe they have proved up many new drilling opportunities in the uppermost stacked zone in the Wilmington field. Here is their description:

"Develop a Drilling Inventory of up to 250 additional horizontal oil wells in the Wilmington Field using high-tech, geo-steering, sinusoidal horizontal drilling and 3D geological modeling to increase oil reserves by 30 - 40 MMBO."

In addition to their main field, Warren has substantial acreage in a CBM field in Wyoming/Colorado. As an added kicker, the company beileves there may be oil and gas potential in the Niobrara formation under their CBM zones.

Here is their latest presentation: http://news.warrenresources.com/phoenix ... sentations

I think this is an overlooked small cap producer. Current market cap is around $276million vs PV10 around 443million as of 12/09. They will drill from cash and cashflow. They earned .12eps in Q2 but about 1/2 was hedging derivative income.

[dan_s]

Thanks for bringing this one up. I will add it to my Watch List. I looked at it about two years ago and thought they had some nice assets.

With CLR and XEC moving up to the Sweet 16 I have room on the Watch List.

Dan

[dan_s]

I started working on a Company Profile for WRES today. I finished the forecast model today. I like what I see so far.

Dan