California Oil Projects
Wilmington Townlot Unit
Our Wilmington Townlot Unit (WTU) is located in the Wilmington Field within the Los Angeles Basin of California. The Wilmington Field has produced over 2.5 billion barrels of oil since its discovery in the 1930s. Since that time, the Wilmington Townlot Unit, a unitized oil field consisting of 1,440 gross (1,424 net) acres, has produced more than 149 million barrels of oil from primary and secondary production. All the working interests in the Wilmington Townlot Unit are subject to the terms and provisions of a unit operating agreement. We hold an approximate 99% undivided working interest in the Wilmington Townlot Unit.
North Wilmington Unit
The North Wilmington Unit (NWU) is located in the Wilmington Oil Field adjacent to our existing Wilmington Townlot Unit. Since its discovery in the 1930s, this unitized oil field consisting of approximately 1,036 gross and net acres has produced more than 37.6 million barrels of oil. All working interests in the North Wilmington Unit are subject to the terms and provisions of a unit operating agreement. We own a 100% working interest and an approximate 85% net revenue interest in the North Wilmington Unit Field, including existing wells, certain equipment and certain surface properties.
California Production Reserves
We seek to develop our California WTU and NWU reserves using directional and horizontal drilling and secondary recovery techniques, such as a waterflood recovery. Estimated proved reserves as of December 31, 2013 were 16.1 MMbo, 53% proved developed with 150 gross identified potential drilling locations.
The present value of Warren’s oil reserves, discounted at 10% per annum and before the impact of income taxes (PV-10), was $504 million at December 31, 2013.