Warren Resources Inc. (NasdaqGS: WRES) detailed its 2014 capex budget on March 6. A total of about $116 million will be split between California and Wyoming operations, the company added.
The budget could be adjusted based on commodity prices, regulatory and environmental approvals, working interest agreements, drilling and service costs, production variance, drilling timing, business venture formations and acquisitions, the company noted.
The capex budget will be funded through operations cash flow and credit facility borrowings, Warren Resources said.
Of the $116 million total, $77 million will go to California's operations while $39 million will go to Wyoming’s.
In California’s Wilmington Townlot Unit (WTU), $30.8 million of the total is for drilling and completions, and about $7.9 million is for facilities improvements and infrastructure, the company said. During the year, two horizontal producers, three upper terminal sinusoidal producers, four ranger sinusoidal producers and eight ford producers will be drilled in the WTU, the company said.
In the North Wilmington Unit (NWU), about $19.3 million will be spent on drilling and completions, while $4.8 million will go to infrastructure and facilities, the company said.
In the Ranger formation, six sinusoidal producers and five sinusoidal injectors will be drilled, the company said.
Allotments for the Leroy Pine project are $12.3 million for drilling and completions and about $2 million for facilities and infrastructure, the company said. 12 producers and two injectors will be drilled, and three wells remaining from 2012 drilling will be completed, the company added.
New York-based Warren Resources Inc. acquires, explores, develops and produces domestic onshore oil and natural gas.
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