Warren Resources
Some natural gas is also collected during the production process, and it is replaced, along with the produced fluids, with clarified water injected into the oil reservoir to prevent the occurrence of sinkholes. Swanton reports that the intent is to recover another 25 percent of the remaining oil over the next 20 to 40 years. Oil production at one of the units is currently about 3,000 barrels of oil per day. Warren Resources reports revenues of about $85 million annually and employs about 40 full-time people. The company is also involved in a joint venture with a large company in developing a 200,000-acre coalbed methane project in Wyoming, at which it produces clean methane gas from the coal. The project began full-scale operations in 2008 after receiving approval by the US Bureau of Land Management of an Environmental Impact Statement, and it produces about 50 million cubic feet of gas a day, or about 18.25 billion cubic feet of gas annually.
Swanton believes that Warren Resources’ model of onshore urban drilling will be important to the industry because with an accurate evaluation, a company can determine what the remaining reserves are in the ground. “When you can solve the biggest problem in the oil business—which is ‘where is the oil?’—you know where you can begin to drill,” he says. “This model considers the environment and the surrounding community. We remove all the above-ground equipment from the previous companies, so our central facility doesn’t look like an industrial setting and you can’t see any of the moving parts of our operations. With environmental concerns now the number one issue, you can’t do things the way they were done for generations any longer. I believe new industry regulations will be stiffer, so why fight them? It’s in everyone’s best interests to make new investments in technologies that can do the job better, faster and cleaner, with virtually no chance of health or safety hazards.” www.warrenresources.com
JUNE 10 www.bus-ex.com
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