The Company estimates that the NWU has 1.7 million barrels of net proved developed producing oil reserves (PDP), and 18.1 million barrels of net proved undeveloped oil reserves (PUD) providing for future infill drilling and secondary recovery water flood opportunities. The NWU contains 73 inactive wells, many of which the Company believes may be returned to production through workovers and other remedial activities. The Company was appointed the operator of the NWU and has budgeted $10 million in 2006 for facilities upgrades, remedial work on 18 idle wells and drilling four new wells in the NWU.
Norman F. Swanton, Chairman & CEO, commented for Warren Resources, "2006 should be a year of significant production growth for the Company. Our large-scale drilling projects in the Wilmington Townlot Unit and the North Wilmington Unit in California could provide triple digit production growth for us in 2006. Additionally, upon completion of the current environmental impact statement in 2006 for the Atlantic Rim coalbed methane project in the Washakie Basin in southwest Wyoming, we will have the flexibility to accelerate the pace of development drilling of potentially high quality CBM wells with our Atlantic Rim joint venture partner, Anadarko Petroleum. We look forward to capitalizing on the Company's large acreage position and extensive drilling opportunities in both of these areas."
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