As of today, Warren has$115 million drawn against the conforming borrowing base of $120 millionavailable under its senior credit facility, not including the $15 millionover-advance feature which expires on May 19, 2009."While our production increased, the first quarter continued to providecommodity pricing challenges for us," commented Norman F Swanton, Chairman andChief Executive Officer. "Our 2009 average realized oil prices of $35.14 perbarrel declined 29% from $49.51 per barrel realized during the last quarter of2008. Similarly, our 2009 realized natural gas prices of $2.89 per Mcf decreased28% from $4.04 per Mcf realized in the fourth quarter of 2008. However, duringthe first quarter, our realized oil differentials from the benchmark WTI pricedecreased from $12 per barrel in January 2009 to $6 per barrel in March 2009.Until oil and gas commodity prices and capital markets improve, we will followthe strategy of optimizing production and the gross profit margin from existingwells without drilling new wells. We will also continue to pursue measures tofurther improve our long term liquidity, including possible asset sales,volumetric production payments, additional commodity price hedging and otherasset monetization strategies."Operational UpdateWilmington Oil Field in the Los Angeles Basin in CaliforniaProduction in the Wilmington Townlot Unit ("WTU") averaged approximately 2,800gross barrels of oil per day ("BOPD") during the first quarter of 2009, comparedto approximately 2,700 gross BOPD for the same quarter in 2008.
At this timeWarren's capital expenditure forecast does not contemplate additional drillingin the WTU during 2009. Warren owns an approximate 98.9% working interest in theWTU.As earlier reported, the Company presented its long-term plan to the South CoastAir Quality Management District ("AQMD") in March of 2008 to handle thedisposition of produced natural gas associated with increased oil productionfrom the WTU. On June 17, 2008, the Company submitted a draft CaliforniaEnvironmental Quality Act ("CEQA") analysis in the form of a NegativeDeclaration to the AQMD for review. On April 16, 2009, the AQMD issued itsNotice of Intent to Adopt a Negative Declaration for our project pursuant to theCEQA analysis. This effectively began the thirty day public comment periodrequired by the CEQA process.
The Company believes the AQMD will certify a finalversion of the Negative Declaration under CEQA within a reasonable time after itreviews the comments submitted during the thirty day comment period whichexpires on May 15, 2009. Our permits to install the best available controltechnology ("BACT") equipment should be issued shortly thereafter. Installationof the gas re-injection facilities will commence upon certification of theNegative Declaration and issuance of the necessary permit approvals by the AQMD.The AQMD gas flaring issues have no effect on current production.Oil production from Warren's North Wilmington Unit ("NWU") averaged 525 grossBOPD in the first quarter of 2009, compared to an average of 420 gross BOPD forthe same period in 2008 Warren owns a 100% working interest in the NWU. WTU andNWU California capital expenditures totaled $600 thousand for the first quarterof 2009.Atlantic Rim Coalbed Methane project in the eastern Washakie Basin, WyomingGross gas production in the Sun Dog Unit is currently 16.5 million cubic feet ofgas per day ("MMcfd") compared to 14.5 MMcfd at the end of 2008 and 10.5 MMcfdat the end of the first quarter of 2008. During the first quarter of 2009, gasproduction from the Sun Dog Unit was limited while construction and well tie-inswere being completed. All of the Sun Dog wells were on line and producing inearly 2009.
In the quarter, water injection, electrical generation and gascompression facilities were expanded in the Sun Dog Unit to accommodate the newdevelopment. We currently plan to increase the Sun Dog compression facilitycapacity to 50 MMcfd by the end of 2009 to accommodate anticipated productionincreases from naturally inclining CBM production. Warren owns an approximate42% working interest in the Sun Dog Unit.Gross gas production from the Doty Mountain Unit was approximately 3.8 MMcfd atthe end of 2008 and has continued to increase to approximately 6.5 MMcfdcurrently. This increased gas production from Doty Mountain is a result of thesuccessful fracture stimulation of several of the existing wells in the unit.Completion of 14 producing wells previously drilled during 2008 and additionalfracture stimulation work in the Doty Mountain Unit has been deferred in orderto reduce capital expenditures. Warren's working interest in the Doty MountainUnit is approximately 36%.In the first quarter of 2009, Warren participated in well enhancements andproduction improvements in the Catalina Unit, which is adjacent to the Sun DogUnit. During the first quarter of 2009, gross gas production from the CatalinaUnit averaged 28.0 MMcfd compared to 27.1 MMcfd during the last quarter of 2008.Currently, the Company has an approximate 7% working interest in the CatalinaUnit. Warren expects its working interest percentage to increase toapproximately 17% as the Catalina Unit is developed on Warren's acreage.At this time Warren and its partners do not intend to develop additional wellsin the Atlantic Rim area during 2009.
Warren's capital expenditure forecast for2009 is focused on expansion of facilities necessary to maximize production fromexisting wells. In order to preserve capital in 2009, Warren and its partners inthe project have elected to temporarily shut-in three of the pilot areas - BlueSky, Jolly Roger, and Brown Cow - that were producing gas at less thancommercial rates while they de-watered. Wyoming capital expenditures totaled$1.2 million during the first quarter of 2009.Updated 2009 GuidanceWarren provides the following updated forecast for production based upon theinformation available at the time of this release. Please see theforward-looking statement at the end of this release for more discussion of theinherent limitations of this information. Year Second Quarter ending EndingDecember 31, June 30, 2009 2009 -------------------------- Production: Oil (MBbl)235 - 245 900 - 1,000 Gas (MMcf) 950 - 1,050 4,200 - 4,800 Gas Equivalent (MMcfe)2,360 - 2,5209,600 - 10,800Capital ExpendituresWe have reduced our 2009 capital expenditures budget to $11 million, consistingof $7 million for our California properties and $4 million for our Wyomingproperties.