THIS BOARD IS FOR WARREN RESOURCES, INC., WHICH ON JUNE 2, 2016 FILED FOR CHAPTER 11 BANKRUPTCY. READ MORE BELOW. PLEASE READ IF YOU THINK YOU WANT TO INVEST IN WRESQ ...
U.S. Securities and Exchange Commission
"Q" Added To Stock Ticker Symbol
When a company is involved in bankruptcy proceedings, the letter "Q" is added to the end of the company's stock ticker symbol. In most cases, when a company emerges from bankruptcy, the reorganization plan will cancel the existing equity stock and the old shares will be worthless. Given that risk, before purchasing stock in a bankrupt company, investors should read the company's proposed plan of reorganization. For more information about the impact of bankruptcy proceedings on securities, please read our online publication, Corporate Bankruptcy.
EXCERPTS OF JUNE 3 , 2016 PRESS RELEASE:
Entry into a Material Definitive Agreement, Bankruptcy or Receivership, Crea
Item 1.03 Bankruptcy or Receivership.
Restructuring Support Agreement
The lenders under the Company's first-lien credit agreement will become lenders under a new first-lien credit facility and will obtain 82.5% of the post-restructuring common equity of the Company (subject to dilution under a new management incentive program and the exercise of certain warrants, to the extent issued, as described in the bullet below);
The lenders under the Company's second-lien credit facility, the holders of the Company's unsecured notes and, at the option of the Plan Sponsor, a holder of another claim (if allowed) will be entitled to share pro rata in 17.5% of the post-restructuring common equity of the Company; and
Item 8.01 Other Events
The Company cautions that trading in the Company's securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company's securities may bear little or no relationship to the actual recovery, if any, by holders of the Company's securities in the Chapter 11 Cases.
About Warren Resources
We are a growing independent energy company engaged in the exploration and development of domestic onshore natural gas and oil reserves. We are one of the leading developers of coalbed methane natural gas, or CBM, in the Rocky Mountain region. As of December 31, 2008 we owned natural gas and oil interests in approximately 175,725 gross (101,453 net) acres. Currently approximately 20% of our net acreage has been developed. Our CBM operations are focused in the Washakie Basin, which comprises approximately the southeast one-third of the Greater Green River Basin in southwestern Wyoming. Additionally, we own natural gas and oil interests in the Wilmington field, located in the Los Angeles Basin of California. We intend to develop our California properties through directional and horizontal drilling. Also, we own natural gas and oil interests in non-strategic properties in Texas, New Mexico and North Dakota.
We seek to generate growth in oil and gas reserves, production volumes and cash flow by exploiting our existing properties through the drillbit by drilling numerous locations identified on our Rocky Mountain CBM properties and on our Wilmington unit. As of December 31, 2008 we have identified a total of 800 drilling locations in our Rocky Mountain CBM properties. In addition, we also have drilling locations in our Wilmington field units. The following map illustrates the location of our substantial reserves and acreage. All of our natural gas and oil drilling, completion, production and land operations are conducted through our wholly owned subsidiary, Warren E&P, Inc.. Warren E&P was formed in 1973, and has offices in Casper, Wyoming and Long Beach, California.