Warren Resources to Purchase North Wilmington Unit

Warren Resources reports that it and its subsidiaries, Warren Resources of California, Inc. and Warren E&P, Inc. (collectively the "Company") have entered into an Asset Purchase Agreement dated December 9, 2005 with Global Oil Production, LLC and Wilmington Management, LLC, two unaffiliated sellers, to acquire substantially all of sellers' right, title and interest within and to the North Wilmington Unit oil field located in the Los Angeles Basin ("NWU"), including the NWU Fault Block No. 2 of approximately 875 acres of mineral rights in Wilmington, California. The assets being acquired include 100% of the working interests in the NWU, subject to pre-existing unaffiliated royalty burdens of approximately 15.5%.

The all cash purchase price is $23 million. Consummation of the acquisition is subject to customary closing conditions and purchase price adjustments. The closing is expected to occur on December 30, 2005. The effective date will be December 31, 2005.