Investor Presentation September 2013 Forward-Looking Statements and - PowerPoint PPT Presentation

Investor Presentation September 2013

Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements. Although Warren Resources (“Warren” or “WRES”) believes that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Additionally, in its filings with the SEC, Warren discloses only proved reserves, which are reserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under economic and operating conditions. Warren uses certain terms in this presentation, such as “resource potential“ and “recoverable”, which SEC guidelines strictly prohibit from being included in filings with the SEC. Estimates of “resource potential“ and “recoverable” quantities of hydrocarbons, which may potentially be recoverable through additional drilling or recovery techniques are by their nature more uncertain than estimates of proved reserves and accordingly are subject to substantially greater risk of not actually being realized by the Company. Investors are urged to consider closely Warren's disclosure of its proved reserves, along with certain risk factors and uncertainties inherent in its business set forth in its other filings with the SEC. WRES undertakes no obligation, and expressly disclaims any duty, to publicly update any forward-looking statements made herein, whether as a result of new information or future events. This presentation includes financial measures that are not in accordance with generally accepted accounting principles (“GAAP”) including PV-10 Value, EBITDA and Adjusted EBITDA. While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of each to the nearest comparable measure in accordance with GAAP, please see the Appendix. Investing in the Future of Energy NASDAQ (WRES) 2

Senior Management Team • Joined Warren Resources in December 2012 as Chairman and CEO • Over 25 years of significant experience in the oil and natural gas industry Philip A. Epstein • In 1992, participated in the founding of Belco Oil & Gas Corp. and served in senior positions Chairman & CEO • Previously co-founded and formerly served as Managing Director of Calypso Energy LLC and co- founded Superior Renewable Energy LLC • Joined Warren Resources in 1995 as a founding member of the management team Timothy A. Larkin • From 1991 to 1994, served as Accounting Manager of Merrill Lynch and Oppenheimer EVP – Mergers and sponsored Palmeri Fund Administrators, Inc. Acquisitions • From 1985 to 1991, worked as Audit Manager at Deloitte & Touche, LLP • Joined Warren Resources in 2001 David E. Fleming • From 1999 to 2001, served as partner with the law firm of Cummings & Lockwood Senior VP, General • From 1993 to 2001, practiced corporate law at Epstein, Becker & Green, P.C. Counsel & Secretary • Joined Warren Resources in 2012 Scott B. Daves • Over 26 years of experience in conventional and CBM operations Engineering Manager of • Held positions with Bearcat Energy, Samson Resources and MarkWest Hydrocarbon Wyoming Division • Joined Warren Resources in 2007 Robert M. Dowell • Over 33 years of experience in various engineering and operations roles VP & General Manager of • Held positions with PA Consulting, Southern California Gas Company and Texaco/Getty Oil Co. California Division Investing in the Future of Energy NASDAQ (WRES) 3

Company Overview • High quality, long-lived asset portfolio Financial Profile comprised of two core operating areas • Ticker: NASDAQ: WRES • Market Capitalization: (1) • $200 MM California Properties • Enterprise Value: $275 MM  Wilmington field in Los Angeles Basin • Long-Term Debt (6/30/13): $90 MM • LTM Adjusted EBITDA (6/30/13): $70 MM*  Primarily focused on waterflood oil recovery and horizontal development • Asset Profile Wyoming Properties • Proved Reserves (12/31/12): 24.9 MMBoe  Greater Green River Basin in • % Oil: ~66% southwestern Wyoming • % Proved Developed: ~67%  • PV-10 (12/31/12): C oalbed methane (“CBM”) production $495 MM* with deeper oil potential • Q1 2013 Net Production: 5,700 Boe/d • R/P Ratio: ~12 years (1) Fully diluted equity market cap as of 9/12/13 Investing in the Future of Energy NASDAQ (WRES) 4 *See Non-GAAP Reconciliation in Appendix

Key Investment Highlights • Geographic and commodity diversity with established infrastructure Balanced Portfolio with • Operate 92% of producing wells as of December 31, 2012 Investment Flexibility • Emerging Wyoming oil resource potential • 8.2 year proved reserve life Low-Risk, Shallow • Modest per well investment costs leading to low maintenance capex Decline Assets • 2012: $43.75 / Boe margin; 3 year all-sources F&D of $14.26 / Boe Attractive • Target 60% IRR on oil wells and 30% IRR on gas wells at current prices Reinvestment Profile • Premium California Midway Sunset oil prices • Current liquidity of approximately $66 million Strong Financial • 50% production hedge target Position • Balance sheet provides flexibility to pursue acquisitions • New management and Board additions bring substantial industry and Experienced M&A experience Management and • Extensive industry experience in horizontal and directional drilling, Operations Team waterflood recovery operations and CBM development and completion Investing in the Future of Energy NASDAQ (WRES) 5 *See Non-GAAP Reconciliation in Appendix

Areas of Operations California Properties Wyoming Properties • Located in the Wilmington Field • Located in southeast portion of in the Los Angeles Basin Greater Green River Basin  Third largest U.S. oilfield • Commercial CBM • Wilmington Townlot Unit (“WTU”) • 51.2 Bcf of net proved reserves  1,424 net acres (99% WI) as of December 31, 2012  12.4 MMBbls net proved (100% PD) reserves as of December 31, • Net production: 16,933 Mcf/d for WY 2012 (55% PDP) July 2013  Net production: 2,815 Bbls/d CA • ~89,000 net acres for July 2013 • North Wilmington Unit (“NWU”) • ~150 targeted drilling locations  1,036 net acres (100% WI) with additional potential locations  4.0 MMBbls net proved • Over 60 well stimulation reserves as of December 31, opportunities 2012 (27% PDP) • November 2012 acquisition of  Net production: 350 Bbls/d for Offices Anadarko interests provided July 2013 operatorship over majority of Producing Properties • ~150 gross drilling locations acreage and pipeline Focus Areas • Receives premium Midway • Deep rights for potential Sunset oil pricing (correlates Niobrara and other formations with Brent pricing) Investing in the Future of Energy NASDAQ (WRES) 6

Oil-Weighted Base with Gas Optionality Asset Summary Oil Reserves • Proved reserves of 24.9 MMBoe at December 31, 2012 48 28 40  66% oil, 67% proved developed 32  PV-10 of $495 million* (MMBbl) 24  Proved developed reserve life index of 8.2 years 16 16 • 25 - 30 MMBbl resource potential in California 8 • 250 - 300 Bcf resource potential in Wyoming 0 (1) Proved Resource Potential Proved Reserves Composition Natural Gas Reserves 360 275 By Category By Product 300 240 (Bcf) Natural PUD 180 Gas 33% 34% 120 PDP Oil 49% 66% 51 60 PDNP 18% - (1) Proved Resource Potential (1) Midpoint of resource potential estimate Investing in the Future of Energy NASDAQ (WRES) 7 *See Non-GAAP Reconciliation in Appendix

Strong Production Growth Through Cycles Historical Production (MBoe) Historical Lease Operating Costs ($/Boe) 2,500 $25.00 Natural Gas Oil $22.18 $20.72 2,028 2,000 $20.00 1,748 $17.53 1,744 $16.93 $16.54 $16.31 1,600 1,499 1,500 $15.00 1,034 1,000 $10.00 500 $5.00 Annual Cost Reduction = 6% CAGR = 14% 0 $0.00 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Investing in the Future of Energy NASDAQ (WRES) 8

Recent Achievements Goal Result  Increased oil production in 2012 by 22%  Eight California DOGGR injection well permits received in 2012 – 2013 YTD Execute in  California to Drive Improved reservoir pressure maintenance reducing production decline Oil Production  Commenced field development at NWU following successful pilot program  Positive regulatory developments in 2012  Decreased per unit lease operating costs while increasing oil production on a relative and absolute basis Focus on Cost Reduction and  Maximizing Cash WTU drilling costs in 2012 reduced 20% from 2011 costs Margins  Negotiated more favorable oil sales contract with Midway Sunset pricing (tied to Brent)  Acquired upstream and midstream interests from Anadarko in the Atlantic Rim and became operator with a focus on reducing operating expenses  Currently own and operate 59-mile pipeline transporting gas from Spyglass Hill Unit to Maintain Wyoming Colorado Interstate Gas pipeline (“CIG”) Resource Upside  Identified inventory of higher return wells  Continued to evaluate opportunities to exploit multi-stacked oil and gas potential Investing in the Future of Energy NASDAQ (WRES) 9