Warren Resources (WRES) 10-K 17 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 17, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	WARREN RESOURCES INC
Entity Central Index Key	892,986
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 35.1
Entity Common Stock, Shares Outstanding		85,249,108
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 26,764	$ 1,703
Accounts receivable-trade, net	9,880	20,025
Restricted investments in U.S. Treasury bonds-available for sale, at fair value (amortized cost of $1,138 in 2015 and $107 in 2014)	1,448	142
Derivative financial instruments	11,081	4,005
Other current assets	5,439	1,245
Total current assets	54,612	27,120
Other Assets
Oil and gas properties-at cost, based on full cost method of accounting, net of accumulated depreciation, depletion, amortization and impairment (includes unproved costs excluded from amortization of $14,658 and $204,626 as of December 31, 2015 and 2014)	162,685	753,496
Property and equipment-at cost, net	1,548	19,622
Restricted investments in U.S. Treasury bonds-available for sale, at fair value (amortized cost of $962 in 2014)		1,280
Deferred bond offering costs	12,510	13,942
Other assets	3,107	3,220
Total other assets	179,850	791,560
Total assets	234,462	818,680
Current Liabilities
Current maturities of other long term liabilities	153	381
Accounts payable and accrued expenses	42,971	57,389
First lien Credit Facility	234,665
Second lien Credit Facility	74,912
Senior Notes	165,367
Convertible debentures	1,636
Total current liabilities	519,704	57,770
Long-Term Liabilities
Senior Notes		296,053
Convertible debentures		1,472
Line of credit		134,749
Other long-term liabilities, less current portion	38,322	36,084
Total liabilities	$ 558,026	$ 526,128
Commitments and contingencies (Note F)
Stockholders' Equity (Deficit)
8% convertible preferred stock-$.0001 par value; authorized, 10,000,000 shares; issued and outstanding 10,703 shares in 2015 and 2014 (aggregate liquidation preference $128 in 2015 and 2014)	$ 128	$ 128
Common stock-$.0001 par value; authorized, 100,000,000 shares; issued, 85,203,466 shares in 2015 and 80,754,225 shares in 2014	9	8
Additional paid-in-capital	516,715	512,843
Accumulated deficit	(840,606)	(220,643)
Accumulated other comprehensive income, net of applicable income taxes of $124 in 2015 and $141 in 2014	190	216
Total Stockholders' Equity (Deficit)	(323,564)	292,552
Total liabilities and stockholders' equity (deficit)	$ 234,462	$ 818,680

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Restricted investments in U.S. Treasury bonds-available for sale, amortized cost (in dollars)	$ 1,138	$ 107
Oil and gas properties, unproved properties excluded from amortization (in dollars)	$ 14,658	204,626
Restricted investments in U.S. Treasury bonds-available for sale, amortized cost (in dollars)		$ 962
8% convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
8% convertible preferred stock, authorized shares	10,000,000	10,000,000
8% convertible preferred stock, issued shares	10,703	10,703
8% convertible preferred stock, outstanding shares	10,703	10,703
8% convertible preferred stock, aggregate liquidation preference (in dollars)	$ 128	$ 128
Preferred stock dividend rate (as a percent)	8.00%	8.00%
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	85,203,466	80,754,225
Accumulated other comprehensive income, applicable income taxes (in dollars)	$ 124	$ 141

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Revenues
Oil and gas sales	$ 83,734	$ 145,385
Transportation revenue	4,639	5,338
Total revenues	88,373	150,723
Operating Expenses
Lease operating expenses and taxes	49,557	48,357
Depreciation, depletion and amortization	66,159	56,489
Impairment expense	578,323
Transportation expenses	1,706	2,403
Acquisition expenses		4,198
General and administrative	17,703	15,271
Total operating expenses	713,448	126,718
Income (loss) from operations	(625,075)	24,005
Other income (expense)
Interest and other income	5,621	2,396
Gain on debt extinguishment	14,407
Troubled debt restructuring expense	(4,039)
Interest expense	(30,403)	(9,643)
Gain on derivative financial instruments	20,083	7,445
Loss on contingent consideration	(540)	(190)
Total other income (expense)	5,129	8
Income (loss) before provision for income taxes	(619,946)	24,013
Deferred income tax (benefit) expense	17	(17)
Net income (loss)	(619,963)	24,030
Less dividends and accretion on preferred shares	10	10
Net income (loss) applicable to common stockholders	$ (619,973)	$ 24,020
Income (loss) per common share-Basic (in dollars per share)	$ (7.55)	$ 0.31
Income (loss) per common share-Diluted (in dollars per share)	$ (7.55)	$ 0.31
Weighted average common shares outstanding-Basic	82,128,892	76,541,400
Weighted average common shares outstanding-Diluted	82,128,892	76,685,511

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ (619,963)	$ 24,030
Other comprehensive income (loss)
Holding gains (losses) on available for sale investments, net of income tax	(26)	26
Comprehensive income (loss)	$ (619,989)	$ 24,056

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Preferred stock.	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income(loss)	Total
Balance at Dec. 31, 2013	$ 128	$ 7	$ 470,441	$ (244,673)	$ 190	$ 226,093
Balance (in shares) at Dec. 31, 2013	11	72,888
Increase (Decrease) in Stockholders' Equity
Shares issued from exercise of options			1,473			1,473
Shares issued from exercise of options (in shares)		649
Shares issued and taxes paid from vesting of restricted stock			(2,067)			(2,067)
Shares issued and taxes paid from vesting of restricted stock (in shares)		551
Shares issued from acquisition		$ 1	41,399			41,400
Shares issued from acquisition ( in shares)		6,666
Dividends declared on preferred stock			(10)			(10)
Stock based compensation			1,607			1,607
Net income (loss)				24,030		24,030
Net change in unrealized gain on investment securities available for sale, net of applicable income taxes					26	26
Balance at Dec. 31, 2014	$ 128	$ 8	512,843	(220,643)	216	292,552
Balance (in shares) at Dec. 31, 2014	11	80,754
Increase (Decrease) in Stockholders' Equity
Shares issued and taxes paid from vesting of restricted stock		$ 1	(330)			(329)
Shares issued and taxes paid from vesting of restricted stock (in shares)		449
Shares issued from debt exchange			2,000			2,000
Shares issued from debt exchange (in shares)		4,000
Dividends declared on preferred stock			(10)			(10)
Stock based compensation			2,212			2,212
Net income (loss)				(619,963)		(619,963)
Net change in unrealized gain on investment securities available for sale, net of applicable income taxes					(26)	(26)
Balance at Dec. 31, 2015	$ 128	$ 9	$ 516,715	$ (840,606)	$ 190	$ (323,564)
Balance (in shares) at Dec. 31, 2015	11	85,203

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ (619,963)	$ 24,030
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Accretion of discount on available for sale debt securities	(69)	(65)
Accretion of discount on Senior Notes	426	202
Amortization of deferred offering costs	4,655	965
Depreciation, depletion, amortization and impairment	644,482	56,489
Deferred tax (benefit) expense	17	(17)
Change in fair value of derivative financial instruments	(7,076)	(7,479)
Loss on contingent consideration	540	190
Stock option expense	2,212	1,607
Gain on debt extinguishment	(14,407)
Change in assets and liabilities:
Decrease in accounts receivable-trade	10,145	1,849
(Increase) decrease in other assets	(7,303)	578
Decrease (increase) in accounts payable and accruals	(8,255)	10,570
Decrease in other long term liabilities	(1,772)	(4,914)
Net cash provided by operating activities	3,632	84,005
Cash flows from investing activities:
Purchase, exploration and development of oil and gas properties	(36,112)	(412,531)
Purchase of property and equipment	(254)	(2,774)
Net cash used in investing activities	(36,366)	(415,305)
Cash flows from financing activities:
Proceeds from Credit Facilities and senior notes offering	347,984	389,599
Payments on debt and debentures	(289,860)	(67,623)
Payments on taxes of vested restricted stock and proceeds from the exercise of stock options	(329)	(593)
Net cash provided by financing activities	57,795	321,383
Net increase (decrease) in cash and cash equivalents	25,061	(9,917)
Cash and cash equivalents at beginning of year	1,703	11,620
Cash and cash equivalents at end of year	26,764	1,703
Supplemental disclosure of cash flow information
Cash paid for interest (net of capitalized interest of $8,969 and $4,980 in 2015 and 2014)	21,763	8,662
Noncash investing and financing activities:
Accrued preferred stock dividend	10	10
Change in accounts payable relating to oil and gas property	(6,173)	7,635
Increase in asset retirement liability	9	2,088
Common Stock issued for Citrus Acquisition		41,400
Common Stock issued for Second Lien Credit Facility	2,000
Noncash debt restructuring exchanges	40,221
Citrus Acquisition Of Marcellus Assets
Noncash investing and financing activities:
Common Stock issued for Citrus Acquisition		41,400
Earn-Out provision	730	6,340
Farm-Out provision	$ (3,410)	$ 3,410

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS
Capitalized interest	$ 8,969	$ 4,980

ORGANIZATION AND ACCOUNTING POL

ORGANIZATION AND ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
ORGANIZATION AND ACCOUNTING POLICIES
ORGANIZATION AND ACCOUNTING POLICIES	NOTE A—ORGANIZATION AND ACCOUNTING POLICIES Nature of Operations Warren Resources, Inc. (the "Company" or "Warren"), was originally formed on June 12, 1990 for the purpose of acquiring and developing oil and gas properties. The Company is incorporated under the laws of the state of Maryland. The Company's properties are located primarily in California, Pennsylvania and Wyoming. Going Concern and Managements Plans The accompanying consolidated financial statements have been prepared on a going concern basis. As a result of the prolonged decrease in commodity prices resulting in declining revenue and a net loss of $620 million in 2015, the Company may not have sufficient liquidty to pay debts as they come due. In light of prevailing oil prices and the necessity of a debt restructuring, Warren elected to not make the approximately $7.5 million interest payment due February 1, 2016 on its unsecured Senior Notes (the "Senior Notes"). The applicable 30-day grace period for such interest payment has expired and consequently an event of default under the indenture governing such notes has occurred and is continuing. This status gives the Indenture trustee and the holders of not less than 25% in aggregate principal amount of the Senior Notes the right to declare the entire principal amount of the Senior Notes plus accrued and unpaid interest due and payable. In addition, this status has resulted in events of default under Warren's first lien credit facility and its second lien credit facility, entitling the administrative agents and lead lenders thereunder to declare all obligations under those credit facilities to be immediately due and payable. However, thus far, no such acceleration of Warren's debt obligations has occurred. Neverthless, these debt instruments are now reclassified from long-term liabilities to current liabilities resulting in a net working capital deficit of $465.1 million at December 31, 2015. Although Warren is continuing to seek a workable agreement regarding a consensual, out-of-court restructuring of its indebtedness, a failure to achieve such an agreement will likely necessitate seeking protection from its creditors through a bankruptcy proceeding, in order to preserve and maximize value for its stakeholders. Furthermore, Warren and its lenders are continuing to evaluate whether a consensual restructuring should be effected outside or through a bankruptcy proceeding. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might result from the outcome of this uncertainty. Principles of Consolidation The consolidated financial statements include accounts of the Company, its wholly-owned subsidiaries, Warren Development Corp., Warren Drilling Corp., Warren Management Corp., Warren Resources of California, Inc., Warren Energy Services LLC, Warren Marcellus LLC and Warren E&P, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. Oil and Gas Properties The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers. In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the "ceiling limitation"), the excess must be charged to expense. The Company recorded impairment expenses of $562 million in 2015 and $-0- in 2014. The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred. For the year ended December 31, 2015, the Company determined that unevaluated oil and gas properties with a book value of $184 million were impaired and transferred to the full cost pool. Revenue Recognition Oil and gas sales result from undivided interests held by the Company in various oil and gas properties. Sales of natural gas and oil produced are recognized when delivered to, or picked up by, the purchaser. For 2015, the largest purchasers and marketers of our total oil and gas production were Clearwater Enterprises, Phillips 66 and Devlar Energy, which accounted for 41%, 48% and 9%, respectively, of total oil and natural gas sales sold in 2015. For 2014, the largest purchasers and marketers of our total oil and gas production were Clearwater Enterprises, Phillips 66 and Devlar Energy, which accounted for 43%, 29% and 26%, respectively, of total oil and natural gas sales sold in 2014. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when acquired to be cash equivalents. The Company maintains its cash and cash equivalents in bank deposit accounts that may exceed federally insured limits. At December 31, 2015, the Company had the majority of its cash and cash equivalents with one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts Receivable Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer's financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of December 31, 2015 and 2014, the Company has an allowance of $16,000 and $16,000 respectively, for doubtful accounts. Investments The Company classifies its investment in debt securities as available-for-sale securities. Available-for-sale securities are recorded at fair value, with net unrealized gains and losses excluded from net earnings and reported as other comprehensive income (loss). Available-for-sale securities represent the market value of zero coupon Treasury Bonds collateralizing convertible debentures and are classified as current or non-current based on the classification of the related debentures. Realized gains and losses are determined on the basis of specific identification of the securities. Offering Costs Costs incurred in connection with the issuance of debt are capitalized and amortized over the term of the related debt using the straight-line method, which approximates the effective interest rate method. The Company has $12.5 million and $13.9 million, net of accumulated amortization of $4.7 million and $1.8 million, included in other assets at December 31, 2015 and 2014, respectively. Costs associated with the issuance of preferred and common stock are reflected as a reduction of proceeds. Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory rates applicable to the period in which the differences are expected to affect taxable income. Valuation allowances are established when, in management's opinion, it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company's policy is to classify accrued penalties and interest related to unrecognized tax benefits in the Company's income tax provision. The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded. Use of Estimates In preparing financial statements, accounting principles generally accepted in the United States of America require management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Actual results could differ from those estimates. The estimate of the Company's oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect reported results. Gas Imbalances The Company follows the sales method of accounting for gas imbalances. A liability is recorded when the Company's excess takes of natural gas volumes exceed its estimated remaining recoverable reserves. No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production. The Company has no significant gas imbalances at December 31, 2015 or December 31, 2014. Stock Based Compensation The Company uses the Black-Scholes option-pricing formula and the Monte Carlo Simulation method to estimate the fair value of stock based compensation expense at the grant date related to stock options and certain restricted stock grants issued. This expense is then recognized using the straight-line method over the vesting period. For the years ended December 31, 2015 and 2014, the Company recognized approximately $2.2 million and $1.6 million in compensation expense, respectively, related to stock option plans and restricted stock. Both the Black-Scholes and the Monte Carlo Simulation method require numerous assumptions, including volatility, service periods and cancellations in their calculations. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in 2015 and 2014 : No expected dividends, weighted average volatility of 64% and 53%, risk free interest rates of 1.23% and 1.09% and expected lives of 3.5 years for incentive options issued in 2015 and 2014. The volatility assumptions were calculated based on the performance of our stock prices for the year. The weighted average per share fair values of the options issued in 2015 and 2014 were $0.40 and $2.03. Accounting for Long-Lived Assets The Company reviews property and equipment for impairment whenever indicators of impairment are present to determine if the carrying amounts exceed the estimated future net cash flows to be realized. Impairment losses are recognized based on the estimated fair value of the asset. Derivative financial instruments The Company has entered into several crude oil and natural gas hedges in order to minimize any effect of a downturn in oil and gas prices and protect profitability. These derivative financial instruments are carried on the balance sheet at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income ("OCI") and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. The Company has elected not to designate its derivatives as fair value or cash flow hedges (Note I). Gains and losses resulting from changes in the fair value of the non-designated hedges are recognized in earnings. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three to twenty-five years, except for land which is not depreciated. Property and equipment consisted of the following at December 31: 2015 2014 (in thousands) Drilling rig $ $ Equipment Automobiles and trucks Furniture and fixtures Land and buildings Office equipment ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the year ended December 31, 2015, the Company recognized an impairment expense on their drilling rig of $16.7 million. Earnings (Loss) Per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) applicable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is based on the assumption that stock options and warrants are converted into common shares using the treasury stock method and convertible debentures and preferred stock are converted using the if-converted method. Conversion or exercise is not assumed if the results are antidilutive. Year ended December 31, 2015 2014 Weighted average shares outstanding—basic Incremental shares issuable from dilutive stock options — ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding—diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Potential common shares relating to options, warrants, preferred stock, restricted stock and convertible debentures excluded from the computations of diluted earnings (loss) per share because they are anti-dilutive are as follows: Year ended December 31, 2015 2014 Employee stock options Convertible debentures Preferred stock Restricted stock Preferred stock is convertible from the date of issuance until redemption at 100% of the redemption price amount into common stock of the Company at a conversion rate between 1 to 1 and 1 to 0.5 (Note D). At December 31, 2015, the Convertible Debentures may be converted until maturity at 100% of principal amount into common stock of the Company at a price of $50.00. At December 31, 2014, the Convertible Debentures may have been converted until maturity at 100% of principal amount into common stock of the Company at prices ranging from $35.00 to $50.00 (Note C). Asset Retirement Obligations The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The associated liability is classified in other long-term liabilities, net of current portion, in the accompanying Consolidated Balance Sheets. The liability is periodically adjusted to reflect (1) new liabilities incurred, (2) liabilities settled during the period, (3) accretion expense, and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion and amortization. The Company has cash held in escrow with a fair market value of $2.9 million that is legally restricted for potential plugging and abandonment liability in the Wilmington field which is recorded in other assets in the Consolidated Balance Sheets. A reconciliation of the Company's asset retirement obligations is as follows: December 31, 2015 2014 (in thousands) Balance at beginning of year $ $ Liabilities incurred in current year Obligations on properties acquired — Liabilities settled in current year ) ) Accretion expense ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Interest The Company capitalizes interest on qualifying assets, which include investments in undeveloped oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress. The capitalized interest is determined by multiplying the Company's interest rate on specific borrowing costs, adjusted to include amortization of bond discount and issuance costs, by the qualifying costs incurred that are excluded from the full cost pool. However, the amount of capitalized interest cannot exceed the amount of gross interest expense incurred in any given period. The capitalized interest amounts are recorded as additions to unevaluated oil and natural gas properties on the consolidated balance sheets. As the costs excluded are transferred to the full cost pool, the associated capitalized interest is also transferred to the full cost pool. Interest of $9.0 million and $5.0 million was capitalized for the years ended December 31, 2015 and 2014, respectively. Recent Accounting Pronouncements In May 2014, the FASB issued authoritative guidance that supersedes previous revenue recognition requirements and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB recently approved a delay which will make the updated guidance effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2016. We are currently evaluating the effect the new standard will have on our financial statements and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-15. In April 2015, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") that is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will be applied retrospectively as of the date of adoption and is effective for fiscal years beginning after December 15, 2015, and interim periods within those years (early adoption permitted). The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements and related disclosures. In November 2015, the FASB issued authoritative guidance aimed at simplifying the accounting for deferred taxes. Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. Importantly, the guidance does not change the existing requirement that only permits offsetting within a jurisdiction—that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The guidance is effective for public business entities in fiscal years beginning after December 15, 2016, and interim periods thereafter. We do not expect this guidance to have a significant impact on our consolidated financial statements, other than balance sheet reclassifications. In January 2016, the FASB issued authoritative guidance that amends existing requirements on the classification and measurement of financial instruments. The standard principally affects accounting for equity investments and financial liabilities where the fair value option has been elected. The guidance is effective for fiscal periods after December 15, 2017, and interim periods thereafter. Early adoption of certain provisions is permitted. We are currently evaluating the effect the new guidance will have on our financial statements and results of operations. In February 2016, the FASB issued authoritative guidance that supersedes previous lease accounting requirements and requires that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. We are currently evaluating the effect the new guidance will have on our consolidated financial statements and results of operations.

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2015
INVESTMENTS
INVESTMENTS	NOTE B—INVESTMENTS The amortized cost, unrealized gains and estimated fair values of the Company's available-for-sale securities held are summarized as follows: December 31, 2015 2014 (in thousands) U.S. Treasury Bonds, stripped of interest, maturing 2020 and 2022, aggregate par value of $1.6 million and $1.6 million, respectively: Amortized cost $ $ Gross unrealized gains ​ ​ ​ ​ ​ ​ ​ ​ Estimated fair value $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The unrealized gains for each year results from the disposition of such securities due to the release of the Company's obligation related to securing its commitment under debentures. The basis of the securities sold is determined using the specific identification method. The amortized cost and estimated fair values of available-for-sale securities, by contractual maturity at December 31, 2015, are shown below. Amortized cost Estimated fair value (in thousands) Due within one year $ $ Due after one year through five years Due after five years through ten years ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
Debt
Debt	NOTE C—DEBT Warren elected to not make the approximately $7.5 million interest payment due February 1, 2016 on its Senior Notes. The applicable 30-day grace period for such interest payment has expired, and consequently an event of default under the indenture governing such notes has occurred and is continuing. This status gives the Indenture trustee and the holders of not less than 25% in aggregate principal amount of the Senior Notes the right to declare the entire principal amount of the Senior Notes plus accrued and unpaid interest due and payable. In addition, this status has resulted in events of default under Warren's first lien credit facility and its second lien credit facility, entitling the administrative agents and lead lenders thereunder to declare all obligations under those credit facilities to be immediately due and payable. Consequently, the following long-term liabilities are due and payable on demand and are considered to be current. However, thus far, no such acceleration of Warren's debt obligations has occurred. Nevertheless, these debt instruments are now reclassified from long-term liabilities to current liabilities. Current maturing long-term debt consisted of the following for the balance sheets dated: December 31, 2015 December 31, 2014 (in thousands) Line of Credit $ — $ First Lien Credit Facility — Second Lien Credit Facility — Convertible Debentures Senior Notes Discount on Senior Notes ) ) ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term portion $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Lien Credit Facility and Senior Notes Exchange On May 22, 2015, Warren Resources entered into a first lien credit agreement by and among the Company, Wilmington Trust, National Association, as Administrative Agent, and the lenders from time to time party thereto, that provides for a five-year, $250 million term loan facility (the "First Lien Credit Facility") which matures on May 22, 2020. At the closing of the First Lien Credit Facility, certain of the first lien lenders extended credit in the form of new term loans in the amount of $172.5 million and in the form of commitments for delayed draw term loans for up to an additional $30 million, subject to certain incurrence tests. Approximately $47 million in additional term loans were issued under the First Lien Credit Facility at closing in exchange for $69.59 million in face value of the 9.000% Senior Notes due 2022, as described further under "9.000% Senior Notes due 2022 "below. The conditions applicable to further draw downs under the First Lien Credit Facility were modified as part of the First Amendment to the First Lien Credit Facility that was entered into on October 22, 2015. The First Lien Credit Facility is guaranteed by Warren Resources of California, Inc., Warren E&P, Inc. and Warren Marcellus LLC, which are three of the Company's wholly-owned subsidiaries and is collateralized by substantially all of Warren's assets, including the equity interests of the guarantors. Warren used the proceeds drawn at closing of the First Lien Credit Facility to repay the balance on its former credit facility, and has been released from all legal obligations on such former facility. The Company accounted for this Exchange transaction in accordance with ASC 470 and ASC 405 and as a result recognized a gain on the retirement of debt in the amount of $14.4 million during 2015. The First Lien Credit Facility is subject to prepayment in respect of asset sales, subject to limited reinvestment rights and certain excluded asset sales. The First Lien Credit Facility also includes certain covenants, including a maintance covenant requiring the Company to maintain a minimum consolidated first lien leverage ratio. The terms of the maintenance covenant were modified as part of the First Amendment to the First Lien Credit Facility that was entered into on October 22, 2015. The First Lien Credit Facility is subject to other usual and customary conditions, representations, and warranties, including restrictions on certain additional indebtedness, dividends to shareholders, liens, investments, mergers, acquisitions, asset dispositions, repurchase or redemption of our common stock, speculative commodity transactions, transactions with affiliates and other matters. The First Lien Credit Facility is subject to customary events of default. If an event of default occurs and is continuing, the Agent may, or at the request of certain required lenders shall, accelerate amounts due under the First Lien Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically, by their terms, become due and payable). The annual interest rate on borrowings under the First Lien Credit Facility is 8.5% plus LIBOR for the applicable LIBOR period (with a minimum LIBOR rate of 1%) and is payable quarterly in arrears on the next to last business day of each March, June, September and December. At December 31, 2015 the interest rate is 9.5%. As of November 9, 2015, $15 million of additional borrowings have been drawn depleting the total available under the facility, resulting in a balance of $234.7 million outstanding at December 31, 2015. Second Lien Credit Facility and Senior Note Exchange On October 22, 2015, the Company entered into a second lien credit facility (the "Second Lien Credit Facility") by and among the Company, Cortland Capital Market Services, LLC, as Administrative Agent, and the lenders from time to to time party thereto. The Second Lien Credit Facility provides for a five-year, approximately $51.0 million term loan facility that matures on November 1, 2020. At closing, certain of the lenders exchanged approximately $63.1 million in face value of previously-issued Senior Notes held by them, plus accrued interest, for (i) approximately $40.1 million of second lien term loans under the Second Lien Facility, and (ii) four million (4,000,000) shares of Company Common Stock and, in addition, extended credit in the form of new second lien term loans in the amount of approximately $11.0 million. The annual interest rate on borrowings under the Second Lien Facility is 12%, with interest payable semi-annually in arrears on each April 20 and October 20. On the first three semi-annual interest payment dates, beginning with April 20, 2016, the Company may elect to pay up to all of such interest (6% per semi-annual period) by capitalizing accrued and unpaid interest and adding the same to the principal amount of the second lien loans then outstanding. For the subsequent three semi-annual interest payment dates, beginning with October 20, 2017 and ending October 20, 2018, the Company may elect to pay up to one quarter of such interest (1.5% per semi-annual period) by capitalizing accrued and unpaid interest and adding the same to the principal amount of the Second Lien Loans then outstanding. The amount of accrued unpaid potential "PIK" interest outstanding on the Second Lien Credit facility at December 31, 2015 is $1.2 million. The transaction was accounted for as a troubled debt restructuring in accordance with ASC 470, whereby no gain on the retirement of debt was recognized and a premium on the issuance equal to the amount of debt retired will be amortized over the life of the instrument. The value of the Second Lien Credit Facility premium at December 31, 2015 was $22.7 million. The total outstanding balance at December 31, 2015 amounts to $74.9 million. 9.000% Senior Notes due 2022 To finance the Marcellus Asset Acquisition on August 11, 2014, the Company issued 9.000% senior notes in a private offering at a price equal to 98.617% for a total of $300 million due to mature on August 1, 2022 (the "Unregistered Senior Notes"). Interest is payable on the Unregistered Senior Notes semi-annually in arrears at a rate of 9.000% per annum on each February 1 and August 1. In connection with the First Lien Credit Facility entered into on May 22, 2015, the Company exchanged $69.59 million in face value of the Unregistered Senior Notes previously held by the lenders under the First Lien Credit Facility for approximately $45.23 million of First Lien Term Loans plus accrued unpaid interest of $1.93 million rolled into the First Lien Term Loans as additional borrowing. On July 27, 2015, substantially all of the outstanding Unregistered Senior Notes were exchanged for an equal principal amount of registered 9.000% Senior Notes due 2022 pursuant to a registration statement on Form S-4 that was declared effective by the Securities and Exchange Commission on June 19, 2015 under the Securities Act (the "Registered Senior Notes" and, together with the Unregistered Senior Notes, the "Senior Notes"). The Registered Senior Notes are identical to the Unregistered Senior Notes except that the Registered Senior Notes are registered under the Securities Act and do not have restrictions on transfer, registration rights or provisions for additional interest. We may redeem, at specified redemption prices, some or all of the Senior Notes at any time on or after August 1, 2017. We may also redeem up to 35% of the Senior Notes using the proceeds of certain equity offerings completed before August 1, 2017. If we sell certain of our assets or experience certain kinds of changes in control, we may be required to offer to purchase the Senior Notes from the holders. The Senior Notes are fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by substantially all of our existing subsidiaries and are fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by our future domestic subsidiaries, subject to certain exceptions. In connection with the Second Lien Credit Facility entered into on October 22, 2015, the Company exchanged $63.1 million in face value of Registered Senior Notes previously held by the lenders the Second Lien Credit Facility for approximately $40.1 million of Second Lien Term Loans. We may redeem, at specified redemption prices, some or all of the Senior Notes at any time on or after August 1, 2017. We may also redeem up to 35% of the Senior Notes using the proceeds of certain equity offerings completed before August 1, 2017. If we sell certain of our assets or experience certain kinds of changes in control, we may be required to offer to purchase the Senior Notes from the holders. The Senior Notes are fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by certain of our existing subsidiaries and will be fully, unconditionally and jointly and severally guaranteed on a senior unsecured basis by our future domestic subsidiaries, subject to certain exceptions. Warren Resources, Inc. is a holding company with no independent assets or operations. Any subsidiaries of the Company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company's ability, or the ability of any subsidiary guarantor, to obtain funds from its subsidiaries through dividends, loans, advances or otherwise. The total outstanding balance at December 31, 2015 amounted to $167.3 million. The Company elected not to pay the semi-annual interest payment of $7.5 million due on February 1, 2016, although it had sufficient liquidity to make the interest payment in full. According to the agreement this failure to pay was not an immediate event of default, however, the 30-day grace period elapsed on March 2, 2016, creating an event of default. Under the indenture governing the Senior Notes, the trustee or holders of not less than 25% in aggregate principal amount of the Senior Notes outstanding may declare the principal amount of the Senior Notes plus accrued and unpaid interest to be due and payable. The failure to pay interest on the Senior Notes within the 30-day grace period has also resulted in events of default under Warren's first lien credit facility and second lien credit facility, which entitle the administrative agents and lead lenders thereunder to declare all obligations thereunder to be immediately due and payable. No such right has been exercised as of the filing of these financials. Convertible Debentures The Convertible Debentures may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50.00 each. Conversion of the Debentures would increase the number of shares outstanding at December 31 as follows: 2015 Maturity date Outstanding principal amount Per share conversion price Common shares if converted (in thousands, except share and per share amounts) Secured Convertible 12% Debentures December 31, 2020 $ $ Secured Convertible 12% Debentures December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Each year, holders of the Secured Convertible Debentures may tender to the Company up to 10% of the aggregate amount outstanding. As of December 31, 2015, the entire principal was reclassified as current and can be tendered by the secured holders due to the event of default that occurred as described above.

STOCKHOLDER'S EQUITY

STOCKHOLDER'S EQUITY	12 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE D—STOCKHOLDERS' EQUITY During 2014, as part of the acquisition of our Marcellus Assets, the Company issued approximately 6.7 million shares of our common stock valued at $41.4 million. During 2014, the Company issued 649,002 shares of common stock to individuals who exercised options at exercise prices ranging from $0.51 to $3.09 per share. During 2015, the Company issued 4 million shares of common stock valued at $2.0 million as a deal fee in conjunction with the Second Lien Credit Facility. The preferred stock has an 8% cumulative dividend, payable quarterly. Preferred dividends of approximately $113 thousand ($10.56 per share) and $103 thousand ($9.60 per share) were accrued at December 31, 2015 and 2014, respectively. The holders of the preferred stock are not entitled to vote except as defined by the agreement or as provided by applicable law. The preferred stock may be voluntarily converted into common stock at the election of the holder based on the table below. The conversion rate is subject to adjustment as defined by the agreement. Preferred to common Period Prior to June 30, 2005 1 to 1 July 1, 2005 through June 30, 2006 1 to .75 July 1, 2006 through redemption 1 to .50 Additionally, commencing December 31, 2012, holders of the preferred stock may elect to require the Company to redeem their preferred stock at a redemption price equal to the liquidation value of $12 per share, plus accrued but unpaid dividends, if any ("Redemption Price"). Upon the receipt of a redemption election, the Company, at its option, shall either: (1) pay the holder cash in the amount equal to the Redemption Price or (2) issue to holder shares of common stock as defined by the agreement. The Company is accreting the carrying value of its preferred stock to its redemption price using the effective interest method with accretion recorded to additional paid in capital. The accretion of preferred stock results in a reduction of earnings per share applicable to common stockholders. There are 10,703 preferred shares outstanding that the Company may be required to redeem at the aggregate Redemption Price of $0.1 million after December 31, 2015. As noted above, the Company could, at its option, settle the redemption requests in shares of common stock. Securities Authorized for Issuance Under Compensation Plans The table below includes information about our equity compensation plans as of December 31, 2015: Number of Shares Authorized for Issuance under plan Number of securities to be issued upon exercise of outstanding options and restricted stock Weighted-average exercise price of outstanding options and restricted stock Number of securities remaining available for future issuance under equity compensation plans 2010 Stock Incentive Plan $ During 2015, the Board of Directors approved and the Company issued 2,730,400 stock options to officers and employees of the Company exercisable at prices ranging from $0.36 to $1.23 per share and 1,669,655 shares of restricted stock. During 2014, the Board of Directors approved and the Company issued 1,372,920 stock options to officers and employees of the Company exercisable at prices ranging from $3.01 to $6.66 per share and 525,296 shares of restricted stock. The options are exercisable at a price not less than the fair market value of the stock at the date of grant, have an exercisable period of five years and generally vest over three years. A summary of the status of the Company's options issued to employees as of December 31, 2015 and 2014 and changes during the years ended on those dates is presented below: Incentive options Weighted Average Exercise Price Options outstanding—December 31, 2013 $ Issued $ Exercised ) $ Expired — — Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding—December 31, 2014 $ Issued $ Exercised — — Expired ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding—December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Options Weighted Average Exercise Price Weighted Average Remaining Term (in years) Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total intrinsic value of options exercised during the year ended December 31, 2015 and 2014 was $-0- and $1.8 million. The total intrinsic value of options outstanding at December 31, 2015 was $-0-. As of December 31, 2015, there was $2.2 million of total unrecognized compensation cost related to non-vested stock options granted under the Plans. This cost is expected to be recognized over a weighted average period of 1.7 years. Cash received from option exercises under all stock-based payment arrangements for the years ended December 31, 2015 and 2014 was $-0- and $1.5 million. We issue new shares of common stock to settle option exercises. A summary of the status of the Company's restricted stock issued to employees as of December 31, 2015 and 2014 and changes during the years ended on those dates is presented below: Shares Weighted Average Fair Value Outstanding at December 31, 2013 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards for executive officers and employees generally vest ratably over three years. Fair value of our restricted shares is based on our closing stock price on the date of grant. As of December 31, 2015, total unrecognized stock-based compensation expense related to non-vested restricted shares was $0.6 million which is expected to be recognized over a weighted average period of approximately 1.4 years.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE E—INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return. The Company's effective income tax rate differed from the federal statutory rate as follows: 2015 2014 (in thousands) Income Taxes at Federal Statutory Rate $ ) $ Change in Valuation Allowance ) Nondeductible Expenses ) State Income Taxes Net of Federal Benefit ) Other ) ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2015 2014 (in thousands) Deferred Tax Assets Relating To: Net Operating Loss Carryforward Oil and Gas Properties and Tangible Equipment Stock Option Expense Unrealized Loss on Derivatives — Other ​ ​ ​ ​ ​ ​ ​ ​ Less Valuation Allowance ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred Tax Asset ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities Relating To: Unrealized Loss on Derivatives ) — Net Unrealized Gain on Investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred Tax Liability ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net Deferred Tax Asset (Liability) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A valuation allowance for deferred tax assets is required when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of this deferred tax asset depends on the Company's ability to generate sufficient taxable income in the future. Management believes it is more-likely-than-not that the net deferred tax asset will not be realized by future operating results. The valuation allowance increased (decreased) by approximately $251 million and ($11 million) for the years ended December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had net operating loss carryforwards for federal income tax purposes of approximately $327 million, which will expire in years 2019 through 2035. Tax years beginning in 2012 are subject to examination by taxing authorities, although net operating loss and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used. The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE F—COMMITMENTS AND CONTINGENCIES General Commitments The Company has entered into various commitments and operating agreements related to development and production of certain oil and gas properties. It is management's belief that such commitments, as stated below, will be met without significant adverse impact to the Company's financial position or results of operations. Leases The Company leases corporate office space in Denver, Colorado, which expires in August 2021. The Company leases oil and gas administrative offices located in New York City, New York, Houston, Texas and Plano, Texas which expire in March 2016, August 2016 and January 2017, respectively. The Company leases field office space in Rawlins, Wyoming, which expired in March 2015 and is currently in month to month status. The Company leases office space in Long Beach, California which expires in September 2020. The Company leases office space in Tunkhannock, Pennsylvania which expires in August 2019. The Company also leases office space in Casper, Wyoming on a month to month basis. Future minimum annual rental payments, which are subject to escalation and include utility charges as of December 31, 2015, are as follows: (in thousands) Year ending December 31: 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense under these leases was approximately $1.08 million and $960 thousand for the years ended December 31, 2015 and 2014, respectively. Lateral Demand and Commodity Fees Contract stipulated $92,000 per month for a period of 35 months (11 months remain on the contract), for gathering services provided in the Marcellus. The contract also call for several additional fees, not included in the calculation of commitment fees. The additional fees include a Lateral Commodity Fee of $0.055 per Mcf up to 150 Bcf of gas gathered, Gathering Commodity Rate of $0.04 per Mcf up to 15,000 Mcf per day per month for certain receipt points, a Gathering Demand Rate of $0.10 per Mcf up to 15,000 Mcf per day per month for certain receipt points, and a Compression Fee of $0.205 per Mcf of gas delivered to certain receipt points. For any amount in excess of the 15,000 Mcf delivered to certain receipt points for the Gathering Demand and Commodity Rates the Company is obligated to pay 50% of the fees which are adjusted for inflation annually by the CPI index. Transportation Fee Contract stipulated fixed monthly amount of $1,241,000 for transportation of gas through the interstate pipeline, up to 120,000 dekatherms per day for a term ending in December 2021 (72 months remain on the contract). If the Company exceeds 120,000 dekatherms per day, the agreement states that a monthly fee of $0.34 per dekatherm over the contractually stipulated amount should be paid. Warren accounts for the aforementioned gathering and transportation fees on the Consolidated Statements of Operations within the lease operating expenses and taxes line item, as incurred. No overage fees have been included in the calculation of transportation fees. Legal Proceedings On November 3, 2014, Warren E&P was named as a defendant in a lawsuit in the Los Angeles County Superior Court, captioned Brandt Haas v. Warren E&P, Inc., Case No. BC562435 , involving a claim disputing royalty payments made from the Company's operation at the Wilmington Townlot Unit. The plaintiff seeks to certify a class of all Wilmington Townlot Unit royalty owners who have received royalty payments since November 2010. The Company filed a Demurrer to plaintiff’s complaint in June 2015, principally on the grounds that the complaint failed to identify the contract or contracts giving rise to the plaintiff’s claims. The court granted the Company’s Demurrer on December 1, 2015. The plaintiff filed an amended complaint on December 21, 2015, alleging that he and each of the putative class members have one or more contracts with the defendant for the payment of royalties. Plaintiff alleges that the Company breached those contracts by excessively deducting from royalty payments improper fees, costs or expenses. The plaintiff also alleges causes of action for unjust enrichment and a violation of the California Unfair Competition Act, both based solely upon the Company’s alleged breach of contract. On January 29, 2016, Warren filed an answer, along with a counterclaim seeking to recover from plaintiff any expenses incurred that properly should have been charged against royalty payments but were not charged. Warren is preparing and expects to file in mid-April 2016 a motion for summary adjudication, seeking a ruling that it was appropriate for defendant to recoup from royalty payments amounts owed by royalty owners. Discovery has been stayed pending this filing, and the Company is unable to estimate a possible loss, or range of possible loss, if any, in this case. We are party to a variety of legal, administrative, regulatory and government proceedings, claims and inquiries arising in the normal course of business. While the results of these proceedings, claims and inquiries cannot be predicted with certainty, management believes that the ultimate outcome of such matters will not have a material effect on the Company's financial condition or results of operations.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE G—EMPLOYEE BENEFIT PLANS The Company has a retirement plan covering substantially all qualified employees under section 401(k) of the Internal Revenue Code. The Company's 401(k) was a safe harbor matching plan where the Company contributed up to 100% of the participants' 401(k) contributions, up to a maximum of 3% of the participants' compensation plus 50% of the next 2% of the active participants' compensation. The Company's safe harbor match vested immediately. The Company may also make discretionary contributions. The Company discontinued any matching policy on May 15, 2015. The Company's expenses under the plan were approximately $144 thousand and $314 thousand for the years ended December 31, 2015, and 2014, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE H—FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values of financial instruments recognized in the Consolidated Balance Sheets or disclosed within these Notes to Consolidated Financial Statements have been determined using available market information, information from unrelated third party financial institutions and appropriate valuation methodologies, primarily discounted projected cash flows. However, considerable judgment is required when interpreting market information and other data to develop estimates of fair value. Short-term Assets and Liabilities. The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. U.S Treasury Bonds—Available-For-Sale Securities. The fair values are based upon quoted market prices for those or similar investments and are reported on the Consolidated Balance Sheets at fair value. Collateral Security Agreement Account (included in other non-current assets). The balance sheet carrying amount approximates fair value, as it earns a market rate. Fixed Rate Debentures. Fair values of fixed rate convertible debentures were calculated using interest rates in effect as of year end for similar instruments with the other terms unchanged. Other Long-Term Liabilities. The carrying amount approximates fair value due the current rates offered to the Company for long-term liabilities of the same remaining maturities. First Lien Credit Facility. The carrying amount approximates fair value due to the current rate stipulated in the first lien credit facility agreement. Second Lien Credit Facility. The carrying amount approximates fair value due to the current rate stipulated in the second lien credit facility agreement inclusive of capitalized interest paid in kind. Derivatives. The fair values are based upon observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs) and are reported on the Consolidated Balance Sheets at fair value. 9.000% Senior Notes. The fair value is based upon quoted market prices for those or similar investments and are reported on the Consolidated Balance Sheets at face value, net of discount. Contingent Earn-Out. The fair value is based on the present value of the amount discounted at the cost of capital. 2015 2014 Fair value Carrying amount Fair value Carrying amount (in thousands) Financial assets: Collateral Security account $ $ $ $ US Treasury Bonds Derivatives Financial liabilities: Fixed rate debentures Line of credit — — First Lien Credit Facility — — Second Lien Credit Facility — — Senior Notes Contingent Earn-Out FAIR VALUE MEASUREMENTS: Fair value as defined by authoritative literature is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded derivatives such as over-the-counter forwards and swaps. Level 3: Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. The valuation assumptions utilized to measure the fair value of the Company's commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs). The following table presents for each hierarchy level our assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis. December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Restricted investments in US Treasury Bonds—available for sale, at fair value $ $ — $ — $ Commodity derivatives $ — $ $ — $ December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Assets Restricted investments in US Treasury Bonds—available for sale, at fair value $ $ — $ — $ Commodity derivatives $ — $ $ — $

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2015
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE I—DERIVATIVE FINANCIAL INSTRUMENTS To minimize the effect of a downturn in oil and gas prices and protect our profitability and the economics of our development plans, we enter into crude oil and natural gas hedge contracts. The terms of contracts depend on various factors, including management's view of future crude oil and natural gas prices. This price hedging program is designed to moderate the effects of a crude oil and natural gas price downturn while allowing us to participate in some commodity price increases. Management regularly monitors the crude oil and natural gas markets and our financial commitments to determine if, when, and at what level some form of crude oil and/or natural gas hedging and/or basis adjustments or other price protection is appropriate. Currently, our more commonly used derivatives are in the form of swaps. However, we may use a variety of derivative instruments in the future to hedge. The Company has not designated these derivatives as hedges. The following table summarizes the open financial derivative positions as of December 31, 2015 related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly. Product Type Contract Period Volume Price per Mcf or Bbl NYMEX Oil Swap 01/01/16 - 03/31/16 250 Bbl/d $62.92 NYMEX Oil Collar 01/01/16 - 03/31/16 500 Bbl/d $50.00 - 64.00 NYMEX Oil Collar 04/01/16 - 06/30/16 250 Bbl/d $55.00 - 69.97 NYMEX Oil Collar 01/01/16 - 12/31/16 500 Bbl/d $50.00 - 71.50 NYMEX Gas Swap 01/01/16 - 03/31/16 5,000 MMBtu/d $3.02 NYMEX Gas Swap 01/01/16 - 10/31/16 15,000 MMBtu/d $2.93 NYMEX Gas Swap 01/01/16 - 12/31/16 15,000 MMBtu/d $3.16 NYMEX Gas Swap 01/01/16 - 03/31/16 15,000 MMBtu/d $3.18 NYMEX Gas Swap 03/01/16 - 10/31/16 10,000 MMBtu/d $2.72 The tables below summarize the amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments under authoritative guidance. For the Years Ended December 31, Derivatives not designated as Hedging Instrument under authoritative guidance 2015 2014 (in thousands) Realized cash settlements on hedges $ $ ) Unrealized gain on hedges ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The table below reflects the line item in our Consolidated Balance Sheet where the fair value of our net derivatives, are included. Derivative Assets December 31, 2015 Balance Sheet Location Fair Value (in thousands) Commodity—Natural Gas current $ Commodity—Oil current ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging instruments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets December 31, 2014 Balance Sheet Location Fair Value (in thousands) Commodity—Natural Gas current $ Commodity—Oil current ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging instruments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives Credit risk The Company does not require collateral or other security from counterparties to support derivative instruments. However, the agreements with those counterparties typically contain netting provisions such that if a default occurs, the non-defaulting party can offset the amount payable to the defaulting party under the derivative contract with the amount due from the defaulting party. As a result of the netting provisions the Company's maximum amount of loss due to credit risk is limited to the net amounts due to and from the counterparties under the derivative contracts. The Company's derivative agreements contain provisions that require cross defaults and acceleration of those instruments to any material debt. If the Company were to default on any of its material debt agreements, it would be a violation of these provisions, and the counterparties to the derivative instruments could request immediate payment on derivative instruments that are in a net liability position at that time.

OIL AND GAS INFORMATION

OIL AND GAS INFORMATION	12 Months Ended
	Dec. 31, 2015
OIL AND GAS INFORMATION
OIL AND GAS INFORMATION	NOTE J—OIL AND GAS INFORMATION Costs related to the oil and gas activities of the Company were incurred as follows for the years ended December 31: 2015 2014 (in thousands) Property acquisition—unproved $ — $ Property acquisition—proved Exploration costs Development costs ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset retirement cost included in oil and gas property costs increased by approximately $8,700 in 2015 and $2.1 million in 2014. The Company had the following aggregate capitalized costs relating to the Company's oil and gas activities at December 31: 2015 2014 (in thousands) Unproved oil and gas properties $ $ Proved oil and gas properties ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation, depletion, amortization and impairment expense ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table sets forth the Company's results of operations from oil and natural gas producing activities for the years ended December 31: 2015 2014 (in thousands) Revenues $ $ Production costs ) ) Accretion of asset retirement obligation ) ) Impairment ) — Depreciation, depletion, amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from oil and gas producing activities $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In the presentation above, no deduction has been made for indirect costs such as corporate overhead or interest expense. No income taxes are reflected above due to the Company's tax loss carryforwards. The following is a summary of Warren's oil and gas properties not subject to amortization as of December 31, 2015: Costs incurred in Fiscal year 2015 Fiscal year 2014 Fiscal year 2013 Prior to 2013 Total (in thousands) Acquisition costs $ — $ — $ — $ — $ — Exploration costs — — — — — Development costs(1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil and gas properties not subject to amortization $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The Company's development costs primarily reflect investment in well cellars and facilities in its Wilmington oil field to facilitate the development of future oil wells. These costs will be allocated to future wells drilled, the majority of these wells are expected to be drilling during the next five to eight years.

OIL AND GAS RESERVE DATA (UNAUD

OIL AND GAS RESERVE DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2015
OIL AND GAS RESERVE DATA (UNAUDITED)
OIL AND GAS RESERVE DATA (UNAUDITED)	NOTE K—OIL AND GAS RESERVE DATA (UNAUDITED) The following estimates of proved reserve quantities and related standardized measure of discounted future net cash flows are estimates only, and do not purport to reflect realizable values or fair market values of the Company's reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. All of the Company's reserves are located in the United States. Proved reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment and operating methods. The standardized measure of discounted future net cash flows were computed by applying 12-month average prices for oil and gas (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses (based on year-end statutory tax rates, with consideration of future tax rates already legislated) to be incurred on pretax net cash flows less tax basis of the properties and available credits, and assuming continuation of existing economic conditions. The estimated future net cash flows are then discounted using a rate of 10%. The following summaries of changes in reserves and standardized measure of discounted future net cash flows were prepared from estimates of proved reserves provided by Netherland, Sewell & Associates, Inc. for 2015 and 2014: Oil (MBbls) Gas (MMcf) Equivalent Units (MBoe) Proved reserves: Balance at December 31, 2013 Purchases of oil and gas reserves in place — Discoveries and extensions Revisions of previous estimates Production ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases of oil and gas reserves in place — — — Discoveries and extensions Revisions of previous estimates ) ) ) Production ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proved reserves at December 31, 2014: Proved developed reserves Proved undeveloped reserves ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proved reserves at December 31, 2015: Proved developed reserves Proved undeveloped reserves ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2015, our proved reserves were 40.2 MMBoe, all of which are scheduled to be drilled within five years of initial disclosure. Undeveloped reserves transferred to developed reserves were 0.8 MMBoe for the year ended December 31, 2015 and capital costs incurred to convert these proved undeveloped reserves were $12.9 million. Revisions decreased 2015 proved natural gas reserves and oil reserves by a net amount of 140 Bcf and 2.9 MMbbls, of which for natural gas 124 Bcf was due to pricing, 16 Bcf due to performance, and for oil 2.2 MMBbl was due to pricing and 0.7 MMBbl was due to performance. In 2015, total oil extensions and discoveries of 0.07 MMbbls resulted from the Company's drilling and completion activities in the Wilmington Townlot and North Wilmington Units in California. In 2015, total gas extensions and discoveries of 4.7 Bcf were from drilling activities in the Marcellus. At December 31, 2014, our proved reserves were 71.3 MMBoe, all of which are scheduled to be drilled within five years of initial disclosure. Undeveloped reserves transferred to developed reserves were 3.9 MMBoe for the year ended December 31, 2014 and capital costs incurred to convert these proved undeveloped reserves to proved developed reserves were $92.9 million. Positive revisions increased 2014 proved natural gas reserves and oil reserves by a net amount of 9 Bcf and 1.4 MMbbls, of which for natural gas 5.7 Bcf was due to pricing, 3.3 Bcf due to performance, and for oil a negative 0.2 MMBbl was due to pricing and 1.6 MMBbl was due to performance. In 2014, total oil extensions and discoveries of 0.5 MMbbls resulted from the Company's drilling and completion activities in the Wilmington Townlot and North Wilmington Units in California. In 2014, total gas extensions and discoveries of 24 Bcf consisted of 18 Bcf which resulted from drilling activities in the Marcellus and 6 Bcf which related to drilling activities in Wyoming. During 2014, we acquired acreage in the Marcellus Shale in Pennsylvania which contributed 204.8 Bcf to our reserves and is reflected in Purchases of reserves in place. Proved undeveloped gas reserves increased from 28 Bcf at December 31, 2013 to 124 Bcf at December 31, 2014, this increase reflects the addition of 93 Bcf of proved undeveloped reserves associated with the acquisition of Marcellus acreage during the year. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves 2015 2014 Future cash inflows $ $ Future production costs and taxes ) ) Future development costs(1) ) ) Future income tax expenses — ) ​ ​ ​ ​ ​ ​ ​ ​ Net future cash flows Discounted at 10% for estimated timing of cash flows ) ) ​ ​ ​ ​ ​ ​ ​ ​ Standardized measure of discounted future net cash flows $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes future estimated asset retirement obligations of $55.8 million in 2015 and $69.7 million in 2014. Changes in Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves 2015 2014 Sales, net of production costs and taxes $ ) $ ) Discoveries and extensions Purchases of reserves in place — Changes in prices and production costs ) ) Revisions of quantity estimates ) Development costs incurred Net changes in development costs ) Interest factor—accretion of discount Net change in income taxes ) ) Changes in production rates (timing) and other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net (decrease) increase ) Balance at beginning of year ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average prices for 2015 and 2014 along with estimates of the operating costs, production taxes and future development and abandonment costs (less salvage value) necessary to produce such reserves. The prices used at December 31, 2015 and were $42.81 and $86.71 per Bbl and $1.74, $3.22 per Mcf, respectively. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense. Operating costs and production taxes are estimated based on current costs with respect to producing oil and natural gas properties. Future development costs including abandonment costs are based on the best estimate of such costs assuming current economic and operating conditions. The future cash flows estimated to be spent to develop the Company's portion of proved undeveloped and proved developed non-producing properties through December 31, 2020 is $124.9 million. Income tax expense is computed based on applying the appropriate statutory tax rate to the excess of future cash inflows less future production and development costs over the current tax basis of the properties involved, less applicable carryforwards, for both regular and alternative minimum tax. The future net revenue information assumes no escalation of costs or prices, except for oil and natural gas sales made under terms of contracts which include fixed and determinable escalation. Future costs and prices could significantly vary from current amounts and, accordingly, revisions in the future could be significant.

QUARTERLY INFORMATION (UNAUDITE

QUARTERLY INFORMATION (UNAUDITED)	12 Months Ended
	Dec. 31, 2015
QUARTERLY INFORMATION (UNAUDITED)
QUARTERLY INFORMATION (UNAUDITED)	NOTE L—QUARTERLY INFORMATION (UNAUDITED) Summarized quarterly financial data for the years ended December 31, 2015 and 2014 are as follows: 2015 Quarter First Second Third Fourth Year (in thousands, except per share amounts) Revenues $ $ $ $ $ Gross profit Net income ) ) ) ) ) Net income applicable to common stockholders ) ) ) ) ) Earnings per share Basic $ ) $ ) $ ) $ ) $ ) Diluted $ ) $ ) $ ) $ ) $ ) 2014 Quarter First Second Third Fourth Year (in thousands, except per share amounts) Revenues $ $ $ $ $ Gross profit Net income Net income applicable to common stockholders Earnings per share Basic $ $ $ $ $ Diluted $ $ $ $ $ Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of quarterly per share amounts may not agree with per share amounts for the year. Gross profit represents total revenues less applicable direct operating expenses.

INTEREST AND OTHER INCOME

INTEREST AND OTHER INCOME	12 Months Ended
	Dec. 31, 2015
INTEREST AND OTHER INCOME
INTEREST AND OTHER INCOME	NOTE M—INTEREST AND OTHER INCOME During 2015, the Company sold various surface lots and other assets located in California which did not contain oil or natural gas deposits. Any gains or losses on sales have been netted against each other and accounted for within the Interest and Other Income line item on the Consolidated Statements of Operations. At December 31, 2015 the total amount of these sales amounted to approximately $5.6 million.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2015
ACQUISITIONS
ACQUISITIONS	NOTE N—ACQUISITIONS Marcellus Assets On August 11, 2014, we acquired essentially all of the Marcellus Assets (the "Marcellus Assets") of Citrus Energy Corporation ("Citrus") and two other working interest owners in exchange for approximately 6.7 million shares of our common stock valued at $41.4 million and cash consideration of $312.5 million, subject to certain post-closing adjustments and certain closing conditions (the "Citrus Acquisition"). The Citrus Acquisition provides us a new area of operations in the Marcellus Shale in Pennsylvania. The Citrus Acquisition was accounted for as a business combination in accordance with Accountant Standards Codification (ASC) No. 805, Business Combinations (ASC 805) which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. The purchase price of the Marcellus Assets was as follows (in thousands): 2014 Cash Consideration $ Fair Value of Warren Equity Common Shares Closing Adjustments ) Fair Value of Earn-Out Provision Fair Value of Farm-Out Provision ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company completed its assessment of the fair values of the assets acquired and liabilities assumed by December 31, 2014. The following table presents the purchase price allocation of the Marcellus Assets as of December 31, 2014, based on the fair values of assets acquired and liabilities assumed (in thousands): 2014 Proved Oil and Gas Properties $ Unproved Oil and Gas Properties Asset Retirement Obligations ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In connection with the Citrus Acquisition, a contingent consideration payment was included as part of the purchase price with a maximum payout of $8.5 million, based upon proved reserves and price differential factors. The fair value of this consideration is based on a 90% probability of achieving the full payout discounted to present value. Pro Forma Impact of Acquisition (Unaudited) The following unaudited pro forma combined results of operations are provided for the year ended December 31, 2014 as though the Citrus Acquisition of the Marcellus Assets had occurred on January 1, 2014. The pro forma combined results of operations for the year ended December 31, 2014 have been prepared by adjusting the historical results of the Company to include the historical results of the Marcellus Assets to give effect to the pro forma events that were directly attributable to the Citrus Acquisition that were factually supportable. These supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the period presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Citrus Acquisition. Future results may vary significantly from the results reflected in this unaudited pro forma financial information because of future events and transactions, as well as other factors. For the Year Ended December 31, 2014 (in thousands) Revenues $ Income (loss) from Operations $ Net income $ Diluted net income per share $

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE O—SUBSEQUENT EVENTS Management On January 1, 2016 and January 5, 2016, respectively, the Company entered into Consulting Services Agreements (the "Consulting Agreements") with each of Jeffrey Keeler, former Vice President of Corporate Development, and Somalya Law PLLC, of which the Company's former Senior Vice President, General Counsel and Corporate Secretary, Saema Somalya, is the sole proprietor (the "Consultants"), for a transitional period following their respective departures. Under the terms of the Consulting Agreements, Mr. Keeler will be engaged as a consultant in order to effect an orderly transition of corporate development and human resources matters, and Somalya Law PLLC will be engaged as a consultant in order to effect an orderly transition of legal matters. The Consulting Agreements for Mr. Keeler and Somalya Law PLLC will commence on January 1, 2016 and January 5, 2016, respectively, and will remain in effect for an initial term through March 31, 2016, unless earlier terminated by the Consultant upon 2 weeks written notice. After completion of the initial term, each of the Consulting Agreements will continue on a month to month basis under the same terms unless earlier terminated by the Company or the Consultant. Prior to entering into the Consulting Agreements, as previously disclosed, each of Mr. Keeler and Ms. Somalya was separated from employment with the Company effective December 31, 2015 and Stewart Skelly, the former Vice President and Chief Financial Officer was separated effective November 6, 2015. Each of these former officers was required under the terms of his or her respective Retention Agreement dated October 15, 2015 (each, a "Retention Agreement") to deliver an irrevocable release in order to receive certain payments and benefits thereunder upon their departure from the Company. In connection with this requirement, each of Mr. Keeler, Ms. Somalya and Mr. Skelly has entered into a Separation Agreement with the Company (each a "Separation Agreement"), pursuant to which each of these former officers provides a release of claims and also a commitment to customary continuing obligations, including without limitation, covenants regarding non-competition, non-solicitation, and non-disclosure. Accordingly, provided that the relevant former officer does not revoke his release prior to January 5, 2016 in the case of Mr. Keeler or January 6, 2016 in the case of Mr. Skelly, as previously disclosed, Mr. Keeler will receive a lump sum cash payment of $306,250 and Mr. Skelly will receive a lump sum cash payment of $275,000. In addition, each of Mr. Keeler and Mr. Skelly will receive reimbursement for a certain period of medical care coverage pursuant to COBRA, which, if elected, will expire on the earlier of the date that the former officer obtains coverage from a subsequent employer, the date that he is otherwise ineligible for continued medical coverage under COBRA and September 1, 2016 for Mr. Keeler and August 6, 2016 for Mr. Skelly. Ms. Somalya's release was irrevocable upon delivery on December 31, 2015, and accordingly, she will receive a lump sum cash payment of $250,000 and reimbursement for a certain period of medical care coverage pursuant to COBRA, which, if elected, will expire on the earlier of the date that Ms. Somalya obtains coverage from a subsequent employer, the date that she is otherwise ineligible for continued medical coverage under COBRA and September 1, 2016. On February 8, 2016, the Company entered into the First Amendment (the "First Amendment") to the Separation Agreement and General Release dated December 28, 2015 (the "Separation Agreement") with Mr. Stewart Skelly, the Company's former Vice President and Chief Financial Officer. Under the terms of the First Amendment, Mr. Skelly has agreed to waive reimbursement of all further COBRA premiums to which he is entitled under the Separation Agreement in consideration for a lump sum payment of $5,000 from the Company. All other provisions of the Separation Agreement remain in full force and effect. On February 15, 2016, Chief Accounting Officer Brian Gelman notified the Company of his decision to resign from all positions with the Company effective immediately. He will be pursuing other opportunities in connection with the closure of the New York City offices in which he is located. On February 16, 2016, Mr. Gelman entered into a Separation and Release Agreement with the Company (the "Separation Agreement") in connection with his departure from the Company. Pursuant to the Separation Agreement, Mr. Gelman provides a release of claims and also a commitment to customary continuing obligations, including without limitation, covenants regarding non-competition, non-solicitation, and non-disclosure. Accordingly, provided that Mr. Gelman does not revoke his release prior to February 23, 2016, he will be entitled to receive the severance benefits provided to him under the terms of the Retention Agreement that he signed with the Company on November 3, 2016 (the "Retention Agreement"), which shall include a lump sum cash payment of $121,000, plus reimbursement for a certain period of medical care coverage pursuant to COBRA, which, if elected, will expire on the earlier of the date that Mr. Gelman obtains coverage from a subsequent employer, the date that he is otherwise ineligible for continued medical coverage under COBRA and August 31, 2016. In addition, also on February 16, 2016, Mr. Gelman and the Company entered into a Consulting Services Agreement for a transitional period from February 16, 2016 through March 31, 2016, unless earlier terminated by Mr. Gelman upon 2 weeks written notice. On February 15, 2016, the Board of Directors of the Company appointed John R. Powers, age 62, to serve as Vice President, Chief Accounting Officer and Controller. Mr. Powers has served as the Company's VP—Accounting since December 2015. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard On June 24, 2015, Warren Resources, Inc. (the "Company") received a deficiency letter from the Listing Qualifications Department of The NASDAQ Stock Market (the "Staff") notifying the Company that, for the 30 consecutive business days preceding June 24, 2015, the bid price for the Company's common stock had closed below the minimum $1.00 per share requirement for continued inclusion on The NASDAQ Global Market ("NASDAQ") pursuant to NASDAQ Listing Rule 5450(a)(1) (the "Rule"). In accordance with the Nasdaq Listing Rules, the Company was provided 180 calendar days, or until December 21, 2015, to regain compliance with the Rule, during which time it would be required to maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. The Company was unable to regain compliance with the Rule by December 21, 2015. Accordingly, on December 22, 2015, the Company received a letter from the Staff notifying it that the Company's common stock would be subject to delisting from The NASDAQ Global Market unless the Company timely requested a hearing before a NASDAQ Listing Qualifications Panel (the "Panel"). On February 18, 2016, the Company received a deficiency letter from the Staff notifying the Company that for the last 30 consecutive business days the market value of the Company's publicly held shares has been below the minimum $15 million market value of publicly held shares requirement for continued listing on NASDAQ as set forth in NASDAQ Listing Rule 5450(b)(3)(C) ("Rule 2"). In accordance with the NASDAQ Listing Rules, the Company has been provided a grace period of 180 calendar days, through August 16, 2016, to evidence compliance with Rule 2. In order to satisfy Rule 2, the Company must evidence a market value of publicly held shares of at least $15 million for a minimum of 10 consecutive business days. The notice has no effect on the listing or trading of the Company's common stock on NASDAQ during the 180 day grace period. On March 7, 2016, the Company received a decision letter from the the Panel indicating that Warren's common stock is permitted to continue to trade on the Nasdaq Global Market through June 20, 2016. The continued listing of the Company's common stock is contingent on the Company (i) providing the Panel with an update regarding its restructuring efforts on or before April 20, 2016 and (ii) completing a reverse stock split that results in a minimum closing bid price of $1.00 for a minimum of ten consecutive trading days prior to June 20, 2016. The Panel noted that it may, at its discretion, require that the minimum closing bid price of $1.00 be met for greater than ten trading days. The Panel's decision is subject to review of the Nasdaq Listing and Hearing Review Council, which may affirm, modify, reverse, dismiss or remand the decision of the Panel. The Panel informed the Company that, if the Company is unable to maintain compliance with the minimum bid requirement prior to June 20, 2016, the Panel will issue a final delist determination and immediately suspend all trading in the Company's common stock.

ORGANIZATION AND ACCOUNTING P24

ORGANIZATION AND ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
ORGANIZATION AND ACCOUNTING POLICIES
Going Concern and Managements Plans	Going Concern and Managements Plans The accompanying consolidated financial statements have been prepared on a going concern basis. As a result of the prolonged decrease in commodity prices resulting in declining revenue and a net loss of $620 million in 2015, the Company may not have sufficient liquidty to pay debts as they come due. In light of prevailing oil prices and the necessity of a debt restructuring, Warren elected to not make the approximately $7.5 million interest payment due February 1, 2016 on its unsecured Senior Notes (the "Senior Notes"). The applicable 30-day grace period for such interest payment has expired and consequently an event of default under the indenture governing such notes has occurred and is continuing. This status gives the Indenture trustee and the holders of not less than 25% in aggregate principal amount of the Senior Notes the right to declare the entire principal amount of the Senior Notes plus accrued and unpaid interest due and payable. In addition, this status has resulted in events of default under Warren's first lien credit facility and its second lien credit facility, entitling the administrative agents and lead lenders thereunder to declare all obligations under those credit facilities to be immediately due and payable. However, thus far, no such acceleration of Warren's debt obligations has occurred. Neverthless, these debt instruments are now reclassified from long-term liabilities to current liabilities resulting in a net working capital deficit of $465.1 million at December 31, 2015. Although Warren is continuing to seek a workable agreement regarding a consensual, out-of-court restructuring of its indebtedness, a failure to achieve such an agreement will likely necessitate seeking protection from its creditors through a bankruptcy proceeding, in order to preserve and maximize value for its stakeholders. Furthermore, Warren and its lenders are continuing to evaluate whether a consensual restructuring should be effected outside or through a bankruptcy proceeding. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might result from the outcome of this uncertainty.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include accounts of the Company, its wholly-owned subsidiaries, Warren Development Corp., Warren Drilling Corp., Warren Management Corp., Warren Resources of California, Inc., Warren Energy Services LLC, Warren Marcellus LLC and Warren E&P, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.
Oil and Gas Properties	Oil and Gas Properties The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers. In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the "ceiling limitation"), the excess must be charged to expense. The Company recorded impairment expenses of $562 million in 2015 and $-0- in 2014. The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred. For the year ended December 31, 2015, the Company determined that unevaluated oil and gas properties with a book value of $184 million were impaired and transferred to the full cost pool.
Revenue Recognition	Revenue Recognition Oil and gas sales result from undivided interests held by the Company in various oil and gas properties. Sales of natural gas and oil produced are recognized when delivered to, or picked up by, the purchaser. For 2015, the largest purchasers and marketers of our total oil and gas production were Clearwater Enterprises, Phillips 66 and Devlar Energy, which accounted for 41%, 48% and 9%, respectively, of total oil and natural gas sales sold in 2015. For 2014, the largest purchasers and marketers of our total oil and gas production were Clearwater Enterprises, Phillips 66 and Devlar Energy, which accounted for 43%, 29% and 26%, respectively, of total oil and natural gas sales sold in 2014.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when acquired to be cash equivalents. The Company maintains its cash and cash equivalents in bank deposit accounts that may exceed federally insured limits. At December 31, 2015, the Company had the majority of its cash and cash equivalents with one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.
Accounts Receivable	Accounts Receivable Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer's financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of December 31, 2015 and 2014, the Company has an allowance of $16,000 and $16,000 respectively, for doubtful accounts.
Investments	Investments The Company classifies its investment in debt securities as available-for-sale securities. Available-for-sale securities are recorded at fair value, with net unrealized gains and losses excluded from net earnings and reported as other comprehensive income (loss). Available-for-sale securities represent the market value of zero coupon Treasury Bonds collateralizing convertible debentures and are classified as current or non-current based on the classification of the related debentures. Realized gains and losses are determined on the basis of specific identification of the securities.
Offering Costs	Offering Costs Costs incurred in connection with the issuance of debt are capitalized and amortized over the term of the related debt using the straight-line method, which approximates the effective interest rate method. The Company has $12.5 million and $13.9 million, net of accumulated amortization of $4.7 million and $1.8 million, included in other assets at December 31, 2015 and 2014, respectively. Costs associated with the issuance of preferred and common stock are reflected as a reduction of proceeds.
Income Taxes	Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory rates applicable to the period in which the differences are expected to affect taxable income. Valuation allowances are established when, in management's opinion, it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company's policy is to classify accrued penalties and interest related to unrecognized tax benefits in the Company's income tax provision. The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.
Use of Estimates	Use of Estimates In preparing financial statements, accounting principles generally accepted in the United States of America require management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Actual results could differ from those estimates. The estimate of the Company's oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect reported results.
Gas Imbalances	Gas Imbalances The Company follows the sales method of accounting for gas imbalances. A liability is recorded when the Company's excess takes of natural gas volumes exceed its estimated remaining recoverable reserves. No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production. The Company has no significant gas imbalances at December 31, 2015 or December 31, 2014.
Stock Based Compensation	Stock Based Compensation The Company uses the Black-Scholes option-pricing formula and the Monte Carlo Simulation method to estimate the fair value of stock based compensation expense at the grant date related to stock options and certain restricted stock grants issued. This expense is then recognized using the straight-line method over the vesting period. For the years ended December 31, 2015 and 2014, the Company recognized approximately $2.2 million and $1.6 million in compensation expense, respectively, related to stock option plans and restricted stock. Both the Black-Scholes and the Monte Carlo Simulation method require numerous assumptions, including volatility, service periods and cancellations in their calculations. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in 2015 and 2014 : No expected dividends, weighted average volatility of 64% and 53%, risk free interest rates of 1.23% and 1.09% and expected lives of 3.5 years for incentive options issued in 2015 and 2014. The volatility assumptions were calculated based on the performance of our stock prices for the year. The weighted average per share fair values of the options issued in 2015 and 2014 were $0.40 and $2.03.
Accounting for Long-Lived Assets	Accounting for Long-Lived Assets The Company reviews property and equipment for impairment whenever indicators of impairment are present to determine if the carrying amounts exceed the estimated future net cash flows to be realized. Impairment losses are recognized based on the estimated fair value of the asset.
Derivative financial instruments	Derivative financial instruments The Company has entered into several crude oil and natural gas hedges in order to minimize any effect of a downturn in oil and gas prices and protect profitability. These derivative financial instruments are carried on the balance sheet at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income ("OCI") and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. The Company has elected not to designate its derivatives as fair value or cash flow hedges (Note I). Gains and losses resulting from changes in the fair value of the non-designated hedges are recognized in earnings.
Property and Equipment	Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three to twenty-five years, except for land which is not depreciated. Property and equipment consisted of the following at December 31: 2015 2014 (in thousands) Drilling rig $ $ Equipment Automobiles and trucks Furniture and fixtures Land and buildings Office equipment Less accumulated depreciation and amortization $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the year ended December 31, 2015, the Company recognized an impairment expense on their drilling rig of $16.7 million.
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) applicable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is based on the assumption that stock options and warrants are converted into common shares using the treasury stock method and convertible debentures and preferred stock are converted using the if-converted method. Conversion or exercise is not assumed if the results are antidilutive. Year ended December 31, 2015 2014 Weighted average shares outstanding—basic Incremental shares issuable from dilutive stock options — Weighted average shares outstanding—diluted ​ ​ ​ ​ ​ ​ ​ ​ Potential common shares relating to options, warrants, preferred stock, restricted stock and convertible debentures excluded from the computations of diluted earnings (loss) per share because they are anti-dilutive are as follows: Year ended December 31, 2015 2014 Employee stock options Convertible debentures Preferred stock Restricted stock Preferred stock is convertible from the date of issuance until redemption at 100% of the redemption price amount into common stock of the Company at a conversion rate between 1 to 1 and 1 to 0.5 (Note D). At December 31, 2015, the Convertible Debentures may be converted until maturity at 100% of principal amount into common stock of the Company at a price of $50.00. At December 31, 2014, the Convertible Debentures may have been converted until maturity at 100% of principal amount into common stock of the Company at prices ranging from $35.00 to $50.00 (Note C).
Asset Retirement Obligations	Asset Retirement Obligations The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The associated liability is classified in other long-term liabilities, net of current portion, in the accompanying Consolidated Balance Sheets. The liability is periodically adjusted to reflect (1) new liabilities incurred, (2) liabilities settled during the period, (3) accretion expense, and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion and amortization. The Company has cash held in escrow with a fair market value of $2.9 million that is legally restricted for potential plugging and abandonment liability in the Wilmington field which is recorded in other assets in the Consolidated Balance Sheets. A reconciliation of the Company's asset retirement obligations is as follows: December 31, 2015 2014 (in thousands) Balance at beginning of year $ $ Liabilities incurred in current year Obligations on properties acquired — Liabilities settled in current year ) ) Accretion expense ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Capitalized Interest	Capitalized Interest The Company capitalizes interest on qualifying assets, which include investments in undeveloped oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress. The capitalized interest is determined by multiplying the Company's interest rate on specific borrowing costs, adjusted to include amortization of bond discount and issuance costs, by the qualifying costs incurred that are excluded from the full cost pool. However, the amount of capitalized interest cannot exceed the amount of gross interest expense incurred in any given period. The capitalized interest amounts are recorded as additions to unevaluated oil and natural gas properties on the consolidated balance sheets. As the costs excluded are transferred to the full cost pool, the associated capitalized interest is also transferred to the full cost pool. Interest of $9.0 million and $5.0 million was capitalized for the years ended December 31, 2015 and 2014, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued authoritative guidance that supersedes previous revenue recognition requirements and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB recently approved a delay which will make the updated guidance effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2016. We are currently evaluating the effect the new standard will have on our financial statements and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2014-15. In April 2015, the Financial Accounting Standards Board issued an Accounting Standards Update ("ASU") that is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will be applied retrospectively as of the date of adoption and is effective for fiscal years beginning after December 15, 2015, and interim periods within those years (early adoption permitted). The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements and related disclosures. In November 2015, the FASB issued authoritative guidance aimed at simplifying the accounting for deferred taxes. Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. Importantly, the guidance does not change the existing requirement that only permits offsetting within a jurisdiction—that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The guidance is effective for public business entities in fiscal years beginning after December 15, 2016, and interim periods thereafter. We do not expect this guidance to have a significant impact on our consolidated financial statements, other than balance sheet reclassifications. In January 2016, the FASB issued authoritative guidance that amends existing requirements on the classification and measurement of financial instruments. The standard principally affects accounting for equity investments and financial liabilities where the fair value option has been elected. The guidance is effective for fiscal periods after December 15, 2017, and interim periods thereafter. Early adoption of certain provisions is permitted. We are currently evaluating the effect the new guidance will have on our financial statements and results of operations. In February 2016, the FASB issued authoritative guidance that supersedes previous lease accounting requirements and requires that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. Early adoption is permitted. We are currently evaluating the effect the new guidance will have on our consolidated financial statements and results of operations.

ORGANIZATION AND ACCOUNTING P25

ORGANIZATION AND ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
ORGANIZATION AND ACCOUNTING POLICIES
Schedule of components of property and equipment	Property and equipment consisted of the following at December 31: 2015 2014 (in thousands) Drilling rig $ $ Equipment Automobiles and trucks Furniture and fixtures Land and buildings Office equipment ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of diluted weighted average common shares	Year ended December 31, 2015 2014 Weighted average shares outstanding—basic Incremental shares issuable from dilutive stock options — ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding—diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of potential common shares excluded from the computations of diluted earnings (loss) per share	Year ended December 31, 2015 2014 Employee stock options Convertible debentures Preferred stock Restricted stock
Schedule of reconciliation of the Company's asset retirement obligations	December 31, 2015 2014 (in thousands) Balance at beginning of year $ $ Liabilities incurred in current year Obligations on properties acquired — Liabilities settled in current year ) ) Accretion expense ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
INVESTMENTS
Summary of amortized cost, unrealized gains and estimated fair values of available-for-sale securities	December 31, 2015 2014 (in thousands) U.S. Treasury Bonds, stripped of interest, maturing 2020 and 2022, aggregate par value of $1.6 million and $1.6 million, respectively: Amortized cost $ $ Gross unrealized gains ​ ​ ​ ​ ​ ​ ​ ​ Estimated fair value $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of amortized cost and estimated fair values of available-for-sale securities, by contractual maturity	The amortized cost and estimated fair values of available-for-sale securities, by contractual maturity at December 31, 2015, are shown below. Amortized cost Estimated fair value (in thousands) Due within one year $ $ Due after one year through five years Due after five years through ten years ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2015
Debt
Schedule of long-term liabilities	December 31, 2015 December 31, 2014 (in thousands) Line of Credit $ — $ First Lien Credit Facility — Second Lien Credit Facility — Convertible Debentures Senior Notes Discount on Senior Notes ) ) ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term portion $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of conversion of debentures that would increase the number of shares outstanding	2015 Maturity date Outstanding principal amount Per share conversion price Common shares if converted (in thousands, except share and per share amounts) Secured Convertible 12% Debentures December 31, 2020 $ $ Secured Convertible 12% Debentures December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY
Schedule of preferred stock conversion rate	Preferred to common Period Prior to June 30, 2005 1 to 1 July 1, 2005 through June 30, 2006 1 to .75 July 1, 2006 through redemption 1 to .50
Schedule of information about equity compensation plans	The table below includes information about our equity compensation plans as of December 31, 2015: Number of Shares Authorized for Issuance under plan Number of securities to be issued upon exercise of outstanding options and restricted stock Weighted-average exercise price of outstanding options and restricted stock Number of securities remaining available for future issuance under equity compensation plans 2010 Stock Incentive Plan $
Schedule of options issued to employees and changes during the years	Incentive options Weighted Average Exercise Price Options outstanding—December 31, 2013 $ Issued $ Exercised ) $ Expired — — Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding—December 31, 2014 $ Issued $ Exercised — — Expired ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding—December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of information about the Company's stock options outstanding	Number of Options Weighted Average Exercise Price Weighted Average Remaining Term (in years) Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of restricted stock issued to employees and changes during the years	Shares Weighted Average Fair Value Outstanding at December 31, 2013 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAXES
Schedule of difference between the Company's effective income tax rate and federal statutory rate	2015 2014 (in thousands) Income Taxes at Federal Statutory Rate $ ) $ Change in Valuation Allowance ) Nondeductible Expenses ) State Income Taxes Net of Federal Benefit ) Other ) ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of deferred tax assets and liabilities	2015 2014 (in thousands) Deferred Tax Assets Relating To: Net Operating Loss Carryforward Oil and Gas Properties and Tangible Equipment Stock Option Expense Unrealized Loss on Derivatives — Other ​ ​ ​ ​ ​ ​ ​ ​ Less Valuation Allowance ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred Tax Asset ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities Relating To: Unrealized Loss on Derivatives ) — Net Unrealized Gain on Investments ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Deferred Tax Liability ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net Deferred Tax Asset (Liability) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
Schedule of future minimum annual rental payments, which are subject to escalation and include utility charges	Future minimum annual rental payments, which are subject to escalation and include utility charges as of December 31, 2015, are as follows: (in thousands) Year ending December 31: 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FAIR VALUE OF FINANCIAL INSTR31

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value and carrying amount of financial instruments	2015 2014 Fair value Carrying amount Fair value Carrying amount (in thousands) Financial assets: Collateral Security account $ $ $ $ US Treasury Bonds Derivatives Financial liabilities: Fixed rate debentures Line of credit — — First Lien Credit Facility — — Second Lien Credit Facility — — Senior Notes Contingent Earn-Out
Schedule of assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis	December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Restricted investments in US Treasury Bonds—available for sale, at fair value $ $ — $ — $ Commodity derivatives $ — $ $ — $ December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Assets Restricted investments in US Treasury Bonds—available for sale, at fair value $ $ — $ — $ Commodity derivatives $ — $ $ — $

DERIVATIVE FINANCIAL INSTRUME32

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
DERIVATIVE FINANCIAL INSTRUMENTS
Summary of open financial derivative positions related to oil and gas production	Product Type Contract Period Volume Price per Mcf or Bbl NYMEX Oil Swap 01/01/16 - 03/31/16 250 Bbl/d $62.92 NYMEX Oil Collar 01/01/16 - 03/31/16 500 Bbl/d $50.00 - 64.00 NYMEX Oil Collar 04/01/16 - 06/30/16 250 Bbl/d $55.00 - 69.97 NYMEX Oil Collar 01/01/16 - 12/31/16 500 Bbl/d $50.00 - 71.50 NYMEX Gas Swap 01/01/16 - 03/31/16 5,000 MMBtu/d $3.02 NYMEX Gas Swap 01/01/16 - 10/31/16 15,000 MMBtu/d $2.93 NYMEX Gas Swap 01/01/16 - 12/31/16 15,000 MMBtu/d $3.16 NYMEX Gas Swap 01/01/16 - 03/31/16 15,000 MMBtu/d $3.18 NYMEX Gas Swap 03/01/16 - 10/31/16 10,000 MMBtu/d $2.72
Summary of amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	For the Years Ended December 31, Derivatives not designated as Hedging Instrument under authoritative guidance 2015 2014 (in thousands) Realized cash settlements on hedges $ $ ) Unrealized gain on hedges ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of fair value and balance sheet location of net derivatives	Derivative Assets December 31, 2015 Balance Sheet Location Fair Value (in thousands) Commodity—Natural Gas current $ Commodity—Oil current ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging instruments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets December 31, 2014 Balance Sheet Location Fair Value (in thousands) Commodity—Natural Gas current $ Commodity—Oil current ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging instruments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

OIL AND GAS INFORMATION (Tables

OIL AND GAS INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
OIL AND GAS INFORMATION
Schedule of costs related to the oil and gas activities incurred	2015 2014 (in thousands) Property acquisition—unproved $ — $ Property acquisition—proved Exploration costs Development costs ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of aggregate capitalized costs relating to the Company's oil and gas activities	2015 2014 (in thousands) Unproved oil and gas properties $ $ Proved oil and gas properties ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation, depletion, amortization and impairment expense ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of the Company's results of operations from oil and natural gas producing activities	2015 2014 (in thousands) Revenues $ $ Production costs ) ) Accretion of asset retirement obligation ) ) Impairment ) — Depreciation, depletion, amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from oil and gas producing activities $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of Warren's oil and gas properties not subject to amortization	Costs incurred in Fiscal year 2015 Fiscal year 2014 Fiscal year 2013 Prior to 2013 Total (in thousands) Acquisition costs $ — $ — $ — $ — $ — Exploration costs — — — — — Development costs(1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil and gas properties not subject to amortization $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The Company's development costs primarily reflect investment in well cellars and facilities in its Wilmington oil field to facilitate the development of future oil wells. These costs will be allocated to future wells drilled, the majority of these wells are expected to be drilling during the next five to eight years.

OIL AND GAS RESERVE DATA (UNA34

OIL AND GAS RESERVE DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2015
OIL AND GAS RESERVE DATA (UNAUDITED)
Schedule of summary of changes in proved reserves	Oil (MBbls) Gas (MMcf) Equivalent Units (MBoe) Proved reserves: Balance at December 31, 2013 Purchases of oil and gas reserves in place — Discoveries and extensions Revisions of previous estimates Production ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases of oil and gas reserves in place — — — Discoveries and extensions Revisions of previous estimates ) ) ) Production ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proved reserves at December 31, 2014: Proved developed reserves Proved undeveloped reserves ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proved reserves at December 31, 2015: Proved developed reserves Proved undeveloped reserves ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of standardized measure of discounted future net cash flows related to proved oil and gas reserves	2015 2014 Future cash inflows $ $ Future production costs and taxes ) ) Future development costs(1) ) ) Future income tax expenses — ) ​ ​ ​ ​ ​ ​ ​ ​ Net future cash flows Discounted at 10% for estimated timing of cash flows ) ) ​ ​ ​ ​ ​ ​ ​ ​ Standardized measure of discounted future net cash flows $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes future estimated asset retirement obligations of $55.8 million in 2015 and $69.7 million in 2014.
Schedule of changes in standardized measure of discounted future net cash flows related to proved oil and gas reserves	2015 2014 Sales, net of production costs and taxes $ ) $ ) Discoveries and extensions Purchases of reserves in place — Changes in prices and production costs ) ) Revisions of quantity estimates ) Development costs incurred Net changes in development costs ) Interest factor—accretion of discount Net change in income taxes ) ) Changes in production rates (timing) and other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net (decrease) increase ) Balance at beginning of year ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

QUARTERLY INFORMATION (UNAUDI35

QUARTERLY INFORMATION (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2015
QUARTERLY INFORMATION (UNAUDITED)
Summary of quarterly financial data	2015 Quarter First Second Third Fourth Year (in thousands, except per share amounts) Revenues $ $ $ $ $ Gross profit Net income ) ) ) ) ) Net income applicable to common stockholders ) ) ) ) ) Earnings per share Basic $ ) $ ) $ ) $ ) $ ) Diluted $ ) $ ) $ ) $ ) $ ) 2014 Quarter First Second Third Fourth Year (in thousands, except per share amounts) Revenues $ $ $ $ $ Gross profit Net income Net income applicable to common stockholders Earnings per share Basic $ $ $ $ $ Diluted $ $ $ $ $

ACQUISITIONS (Tables)

ACQUISITIONS (Tables) - Citrus Acquisition Of Marcellus Assets	12 Months Ended
	Dec. 31, 2015
Schedule of business acquisition purchase price	The purchase price of the Marcellus Assets was as follows (in thousands): 2014 Cash Consideration $ Fair Value of Warren Equity Common Shares Closing Adjustments ) Fair Value of Earn-Out Provision Fair Value of Farm-Out Provision ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of initial purchase price allocation of the acquisition	The following table presents the purchase price allocation of the Marcellus Assets as of December 31, 2014, based on the fair values of assets acquired and liabilities assumed (in thousands): 2014 Proved Oil and Gas Properties $ Unproved Oil and Gas Properties Asset Retirement Obligations ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of unaudited pro forma financial information	For the Year Ended December 31, 2014 (in thousands) Revenues $ Income (loss) from Operations $ Net income $ Diluted net income per share $

ORGANIZATION AND ACCOUNTING P37

ORGANIZATION AND ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ 246,354	$ 186,061	$ 85,276	$ 102,272	$ (1,340)	$ (3,726)	$ (10,754)	$ (8,210)	$ 619,963	$ (24,030)
Net working capital deficit									465,100
Senior Notes.
Interest payment due on February 1, 2016, elected not to make									$ 7,500
Grace period for interest payment before event of default									30 days
Minimum principal holding percentage, right to declare acceleration of debt obligations									25.00%

ORGANIZATION AND ACCOUNTING P38

ORGANIZATION AND ACCOUNTING POLICIES (Details 2) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)
Oil and Gas Properties
Discount rate applied to estimated future net revenues from proved oil and gas reserves (as a percent)	10.00%
Impairment of oil and gas properties	$ 562	$ 0
Book value of impairment of unevaluated oil and gas properties	$ 184
Cash and Cash Equivalents
Number of financial institutions holding majority of the entity's cash and cash equivalents | item	1
Clearwater Enterprises
Revenue Recognition
Percentage of total oil and natural gas sales sold accounted by the largest purchasers and marketers for the company's production	41.00%	43.00%
Phillips 66
Revenue Recognition
Percentage of total oil and natural gas sales sold accounted by the largest purchasers and marketers for the company's production	48.00%	29.00%
Devlar Energy
Revenue Recognition
Percentage of total oil and natural gas sales sold accounted by the largest purchasers and marketers for the company's production	9.00%	26.00%

ORGANIZATION AND ACCOUNTING P39

ORGANIZATION AND ACCOUNTING POLICIES - Accounts Receivable (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable
Credit period	30 days
Allowance for doubtful accounts	$ 16,000	$ 16,000
Offering Costs
Deferred finance costs, net of accumulated amortization	12,500,000	13,900,000
Accumulated amortization of debt issuance costs	4,700,000	1,800,000
Stock Based compensation
Compensation expense related to stock options and restricted stock	$ 2,200,000	$ 1,600,000
Employee stock options
Stock Based compensation
Expected dividends rate (as a percent)	0.00%	0.00%
Weighted-average assumptions used to value stock options
Expected volatility (as a percent)	64.00%	53.00%
Risk-free interest rate (as a percent)	1.23%	1.09%
Expected life	3 years 6 months	3 years 6 months
Weighted average per share fair value (in dollars per share)	$ 0.40	$ 2.03

ORGANIZATION AND ACCOUNTING P40

ORGANIZATION AND ACCOUNTING POLICIES - Property and Equipment (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Cost	$ 27,566	$ 27,561
Less accumulated depreciation and amortization	26,018	7,939
Property and equipment, net	1,548	19,622
Impairment of Oil and Gas Properties	562,000	0
Drilling rig
Property and Equipment
Cost	22,374	22,159
Impairment of Oil and Gas Properties	16,700
Equipment
Property and Equipment
Cost	1,503	1,506
Automobiles and trucks
Property and Equipment
Cost	801	801
Furniture and fixtures
Property and Equipment
Cost	522	373
Land and buildings
Property and Equipment
Cost	242	943
Office equipment
Property and Equipment
Cost	$ 2,124	$ 1,779
Minimum
Property and Equipment
Estimated useful lives of assets except land	3 years
Maximum
Property and Equipment
Estimated useful lives of assets except land	25 years

ORGANIZATION AND ACCOUNTING P41

ORGANIZATION AND ACCOUNTING POLICIES - Earnings (Loss) Per Common Share (Details 5) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
ORGANIZATION AND ACCOUNTING POLICIES
Weighted average shares outstanding - basic	82,128,892	76,541,400
Incremental shares issuable from dilutive stock options		144,111
Weighted average shares outstanding - diluted	82,128,892	76,685,511
Employee stock options
Antidilutive securities
Anti-dilutive securities (in shares)	3,593,589	1,245,336
Convertible Debentures
Antidilutive securities
Anti-dilutive securities (in shares)	32,720	32,720
Percentage of principal amount at which debentures may be converted from the date of issuance until maturity into common stock	100.00%	100.00%
Conversion price (in dollars per share)	$ 50
Convertible Debentures | Minimum
Antidilutive securities
Conversion price (in dollars per share)		$ 35
Convertible Debentures | Maximum
Antidilutive securities
Conversion price (in dollars per share)		$ 50
Preferred stock
Antidilutive securities
Anti-dilutive securities (in shares)	5,352	5,352
Percentage of redemption price amount from the date of issuance until redemption that may be converted	100.00%
Preferred stock | Minimum
Antidilutive securities
Number of common shares into which one share of preferred stock is to be converted	0.5
Preferred stock | Maximum
Antidilutive securities
Number of common shares into which one share of preferred stock is to be converted	1
Restricted Stock
Antidilutive securities
Anti-dilutive securities (in shares)	1,277,468	689,370

ORGANIZATION AND ACCOUNTING P42

ORGANIZATION AND ACCOUNTING POLICIES - Asset Retirement Obligations & Capitalized Interest (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Asset Retirement Obligations
Fair market value of cash held in escrow that is legally restricted for potential plugging and abandonment liability	$ 2,900
Reconciliation of asset retirement obligations
Balance at beginning of year	29,771	$ 26,785
Liabilities incurred in current year	9	1,768
Obligations on properties acquired		320
Liabilities settled in current year	(1,232)	(1,623)
Accretion expense	2,857	2,521
Carrying amount	31,405	29,771
Interest costs capitalized	$ 9,000	$ 5,000

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale securities
Amortized cost	$ 1,138
Estimated fair value	1,448
Amortized cost
Due within one year	114
Due after one year through five years	546
Due after five years through ten years	478
Total	1,138
Estimated fair value
Due within one year	145
Due after one year through five years	685
Due after five years through ten years	618
Estimated fair value	1,448
U.S. Treasury Bonds
Available-for-sale securities
Amortized cost	1,138	$ 1,069
Gross unrealized gains	310	353
Estimated fair value	1,448	1,422
Amortized cost
Total	1,138	1,069
Estimated fair value
Estimated fair value	1,448	$ 1,422
U.S. Treasury Bonds, maturing 2020
Available-for-sale securities
Aggregate par value	1,600
U.S. Treasury Bonds, maturing 2022
Available-for-sale securities
Aggregate par value	$ 1,600

DEBT (Details)

DEBT (Details) $ in Thousands, shares in Millions	Aug. 01, 2017	Nov. 09, 2015USD ($)	Oct. 22, 2015USD ($)itemshares	May. 22, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Aug. 11, 2014USD ($)
Debt
Line of Credit						$ 134,749
First Lien Credit Facility					$ 234,665
Second Lien Credit Facility					74,912
Convertible debentures					1,636	1,636
Senior Notes					167,265	300,000
Discount on Senior Notes					(1,898)	(3,947)
Total long-term debt					476,580	432,438
Less current portion					(476,580)	(382)
Long-term portion						432,056
Debt
Debt conversion, face amount					2,000
Gain on retirement of debt					14,407
Draws on additional borrowings					347,984	389,599
Outstanding borrowing amount					476,580	$ 432,438
Credit Facility | First Lien Credit Facility
Debt
Total long-term debt					234,700
Debt
Term of loan				5 years
Face amount of debt instrument				$ 250,000
Debt conversion, face amount				47,000
Number of wholly-owned subsidiaries that guarantee Line of Credit Facility | item			3
Draws on additional borrowings		$ 15,000
Outstanding borrowing amount					$ 234,700
Senior notes, face amount				$ 250,000
Credit Facility | First Lien Credit Facility | LIBOR
Debt
Variable rate basis					LIBOR
Interest rate during the period (as a percent)					9.50%
Interest rate (as a percent)				8.50%
Credit Facility | Second Lien Credit Facility
Debt
Term of loan			5 years
Face amount of debt instrument			$ 51,000
Gain on retirement of debt					$ 0
Accrued unpaid interest rolled into the Lien Term Loans					1,200
Debt premium					$ 22,700
Senior notes, face amount			$ 51,000
Interest rate (as a percent)					12.00%
Credit Facility | Second Lien Credit Facility | Beginning with April 20, 2016
Debt
Number of semi annual interest payment dates | item			3
Semi-annual interest may elect (as a percent)			6.00%
Credit Facility | Second Lien Credit Facility | Beginning with October 20, 2017 and ending October 20, 2018
Debt
Number of semi annual interest payment dates | item			3
Semi-annual interest may elect (as a percent)			1.50%
Credit Facility | Certain Lenders | First Lien Credit Facility
Debt
Borrowing capacity				$ 172,500
Additional borrowing capacity				30,000
Debt conversion, face amount				45,230
Accrued unpaid interest rolled into the Lien Term Loans				$ 1,930
Credit Facility | Certain Lenders | Second Lien Credit Facility
Debt
Face amount of debt instrument			$ 11,000
Debt conversion, face amount			40,100
Senior notes, face amount			11,000
Credit Facility | Certain Holders | Second Lien Credit Facility
Debt
Debt conversion, face amount			40,100
Credit Facility | Minimum | First Lien Credit Facility | LIBOR
Debt
Margin (as a percent)				1.00%
Senior Notes.
Debt
Interest payment due on February 1, 2016, elected not to make					$ 7,500
Grace period for interest payment before event of default					30 days
Minimum principal holding percentage, right to declare acceleration of debt obligations					25.00%
Debt
Face amount of debt instrument							$ 300,000
Gain on retirement of debt					$ 14,400
Senior notes, face amount							$ 300,000
Percentage on initial purchase price							98.617%
Interest rate (as a percent)					9.00%		9.00%
Interest payment due on February 1, 2016, elected not to make					$ 7,500
Grace period for interest payment before event of default					30 days
Minimum principal holding percentage, right to declare acceleration of debt obligations					25.00%
Senior Notes. | First Lien Credit Facility
Debt
Fair value of Senior Notes exchanged				$ 69,590
Senior Notes. | Certain Lenders
Debt
Fair value of Senior Notes exchanged			$ 63,100
Senior Notes. | Certain Holders
Debt
Number of common stock shares issued for conversion of debt | shares			4
Senior Notes. | Certain Holders | Second Lien Credit Facility
Debt
Fair value of Senior Notes exchanged			$ 63,100
Senior Notes. | Maximum | Forecast
Debt
Percentage of Senior Notes can be redeemed on or after August 1, 2017	35.00%

DEBT (Details 2)

DEBT (Details 2) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item$ / shares	Dec. 31, 2014USD ($)
Conversion of Debentures
Outstanding principal amount	$ 476,580	$ 432,438
Convertible Debentures
Conversion of Debentures
Percentage of principal amount at which debentures may be converted from the date of issuance until maturity into common stock	100.00%
Outstanding principal amount	$ 1,636
Conversion price (in dollars per share) | $ / shares	$ 50
Common shares if converted | item	32,720
Convertible Debentures | Maximum
Conversion of Debentures
Percentage of aggregate amount outstanding that the holders may tender each year	10.00%
Secured Convertible Debentures, due December 31, 2020
Conversion of Debentures
Interest rate (as a percent)	12.00%
Outstanding principal amount	$ 835
Conversion price (in dollars per share) | $ / shares	$ 50
Common shares if converted | item	16,700
Secured Convertible Debentures, due December 31, 2022
Conversion of Debentures
Interest rate (as a percent)	12.00%
Outstanding principal amount	$ 801
Conversion price (in dollars per share) | $ / shares	$ 50
Common shares if converted | item	16,020

STOCKHOLDER'S EQUITY (Details)

STOCKHOLDER'S EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 11, 2014	Dec. 31, 2015	Dec. 31, 2014
Stock Based compensation
Common Stock issued for Citrus Acquisition			$ 41,400
Citrus Acquisition Of Marcellus Assets
Stock Based compensation
Common Stock issued for Citrus Acquisition			$ 41,400
Citrus Acquisition Of Marcellus Assets | Common stock
Stock Based compensation
Shares issued from acquisition ( in shares)	6,700,000		6,700,000
Common Stock issued for Citrus Acquisition	$ 41,400		$ 41,400
Employee stock options
Stock Based compensation
Shares issued from exercise of options (in shares)			649,002
Exercise price (in dollars per share)			$ 2.27
Employee stock options | Minimum
Stock Based compensation
Exercise price (in dollars per share)			0.51
Employee stock options | Maximum
Stock Based compensation
Exercise price (in dollars per share)			$ 3.09
Second Lien Credit Facility
Stock Based compensation
Number of common shares issued as deal fee in conjunction with debt facility		4,000,000
Value of common shares issued as deal fee in conjunction with debt facility		$ 2,000

STOCKHOLDER'S EQUITY - Conversi

STOCKHOLDER'S EQUITY - Conversion Rate (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Preferred stock
Cumulative dividend (as a percent)	8.00%	8.00%
Number of outstanding redeemable preferred shares	10,703	10,703
Aggregate redemption price	$ 100
Preferred stock
Preferred stock
Cumulative dividend (as a percent)	8.00%	8.00%
Accrued preferred dividends	$ 113	$ 103
Accrued preferred dividends (in dollars per share)	$ 10.56	$ 9.60
Redemption price (in dollars per share)	$ 12
Preferred stock | Prior to June 30, 2005
Preferred stock
Preferred to common (in shares)	1
Preferred stock | July 1, 2005 through June 30, 2006
Preferred stock
Preferred to common (in shares)	0.75
Preferred stock | July 1, 2006 through redemption
Preferred stock
Preferred to common (in shares)	0.50

STOCKHOLDERS' EQUITY - Securiti

STOCKHOLDERS' EQUITY - Securities Authorized for Issuance Under Compensation Plans (Details 3) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Securities authorized for issuance under compensation plans
Weighted average exercise price (in dollars per share)	$ 2.26		$ 2.26
Incentive options
Outstanding at the end of the period (in shares)	3,593,589
Weighted Average Exercise Price
Outstanding at the end of the period (in dollars per share)	$ 2.26
Exercise price 0.36
Compensation plan
Exercise Price (in dollars per share)			0.36
Exercise price 1.23
Compensation plan
Exercise Price (in dollars per share)			1.23
Exercise price 3.01
Compensation plan
Exercise Price (in dollars per share)				$ 3.01
Exercise price 6.66
Compensation plan
Exercise Price (in dollars per share)				6.66
Employee stock options
Securities authorized for issuance under compensation plans
Weighted average exercise price (in dollars per share)	$ 4.37	$ 2.65	$ 2.26	$ 4.37
Compensation plan
Exercisable period	5 years
Vesting period	3 years
Incentive options
Outstanding at the beginning of the period (in shares)	1,987,159	1,490,574
Issued (in shares)	2,730,400	1,372,920
Exercised (in shares)		(649,002)
Expired (in shares)	(89,100)
Forfeited (in shares)	(1,034,870)	(227,333)
Outstanding at the end of the period (in shares)	3,593,589	1,987,159
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 4.37	$ 2.65
Issued (in dollars per share)	0.88	5.18
Exercise price (in dollars per share)		2.27
Expired (in dollars per share)	2.61
Forfeited (in dollars per share)	2.64	3.98
Outstanding at the end of the period (in dollars per share)	$ 2.26	$ 4.37
Restricted Stock
Compensation plan
Granted (in shares)	1,669,655	525,296
2010 Stock Incentive Plan
Securities authorized for issuance under compensation plans
Number of Shares Authorized for Issuance under plan			9,950,000
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)			4,871,057
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$ 1.85		$ 1.85
Number of securities remaining available for future issuance under equity compensation plans (in shares)			2,828,050
Weighted Average Exercise Price
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$ 1.85

STOCKHOLDERS' EQUITY - Number o

STOCKHOLDERS' EQUITY - Number ofOptions (Details 4)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Outstanding at the end of the period
Number of Options (in shares) | shares	3,593,589
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 2.26
Weighted Average Remaining Term	3 years 9 months 29 days
Exercisable at the end of the period
Number of Options (in shares) | shares	738,765
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.10
Weighted Average Remaining Term	2 years 7 months 13 days

STOCKHOLDERS' EQUITY - Intrinsi

STOCKHOLDERS' EQUITY - Intrinsic Value of Options (Details 5) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Employee stock options
Stock Based compensation
Total intrinsic value of options exercised	$ 0	$ 1.8
Intrinsic value of options outstanding	0
Total unrecognized stock-based compensation expense	$ 2.2
Weighted average period over which unrecognized compensation cost is expected to be recognized	1 year 8 months 12 days
Cash received from exercise of options	$ 0	$ 1.5
Restricted Stock
Stock Based compensation
Total unrecognized stock-based compensation expense	$ 0.6
Weighted average period over which unrecognized compensation cost is expected to be recognized	1 year 4 months 24 days
Shares
Outstanding at the beginning of the period (in shares)	689,370	1,898,133
Granted (in shares)	1,669,655	525,296
Vested (in shares)	(697,630)	(908,750)
Forfeited (in shares)	(383,927)	(825,309)
Outstanding at the end of the period (in shares)	1,277,468	689,370
Weighted Average Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 2.87	$ 1.97
Granted (in dollars per share)	0.56	3
Vested (in dollars per share)	1.79	2.39
Forfeited (in dollars per share)	2.06	1.41
Outstanding at the end of the period (in dollars per share)	$ 0.69	$ 2.87
Vesting period (excluding shares granted in March 2010)	3 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
INCOME TAXES
Income taxes at federal statutory rate	$ (210,781)	$ 8,167
Change in valuation allowance	251,045	(10,647)
Nondeductible expenses	3,240	869
State income taxes net of federal benefit	(37,197)	1,441
Other	(6,290)	153
Total	17	(17)
Deferred tax assets relating to:
Net operating loss carryforward	130,816	94,321
Oil and gas properties and tangible equipment	228,324	6,256
Stock option expense	4,207	3,322
Unrealized loss on derivatives		4,381
Other	719	327
Total gross deferred tax assets	364,066	108,607
Less valuation allowance	359,510	108,466
Total deferred tax asset	4,556	141
Deferred tax liabilities relating to:
Unrealized loss on derivatives	(4,432)
Net unrealized gain on investments	(124)	(141)
Total deferred tax liability	$ (4,556)	$ (141)

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Loss Carryforwards (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
INCOME TAXES
Increase (decrease) in valuation allowance	$ 251	$ (11)
Net operating loss carryforwards
Operating loss and credit carryforwards period subject to examination and adjustments	3 years
Federal income tax
Net operating loss carryforwards
Operating loss carryforwards, amount	$ 327

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Future minimum annual rental payments, which are subject to escalation and include utility charges
2,015	$ 901
2,016	648
2,017	623
2,018	635
2,019	531
Thereafter	141
Total	3,479
Rent expense	$ 1,080	$ 960

COMMITMENTS AND CONTINGENCIES54

COMMITMENTS AND CONTINGENCIES (Details 2) - 12 months ended Dec. 31, 2015	Total	$ / item	Mcf	Bcf	MMcf	$ / Mcf	Total	USD ($)
Lateral Demand and Commodity Fees
Long-term Purchase Commitment [Line Items]
Monthly payment | $								$ 92,000
Long-term Purchase Commitment, Period	35 months
Contract remaining period	11 months
Additional Fees Not in Purchase Commitment [Abstract]
Lateral commodity fee per MCF						0.055
Gathering Commodity Rate per Mcf						0.04
Gathering Demand Rate per Mcf						0.10
Compression Fee per Mcf						0.205
Threshold for additional fees, volume of gas per day			15,000	150
Percentage of the fees for amount in excess of the 15,000 Mcf for the Gathering Demand and Commodity Rates							50.00%
Transportation Fees
Long-term Purchase Commitment [Line Items]
Monthly payment | $								1,241,000
Contract remaining period	72 months
Additional Fees Not in Purchase Commitment [Abstract]
Threshold for additional fees, volume of gas per day | MMcf					120,000
Transportation overage fee (per dekatherm) | $ / item		0.34
Transportation overage fees | $								$ 0

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Employee benefit plan
Employer match of participants' contributions of next 2% of eligible compensation (as a percent)	50.00%
Percentage of eligible compensation, matched 50% by employer	2.00%
Expenses under the plan	$ 144	$ 314
Maximum
Employee benefit plan
Employer match of participants' contributions not exceeding 3 percent of compensation (as a percent)	100.00%
Percentage of eligible compensation, matched 100% by employer	3.00%

FAIR VALUE OF FINANCIAL INSTR56

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Aug. 11, 2014
Financial assets
Available for sale securities	$ 1,448
Financial liabilities
First lien credit facility	234,665
Second lien credit facility	74,912
Fair value
Financial assets
Collateral security account	2,812	$ 3,165
Derivatives	11,081	4,005
Financial liabilities
Fixed rate debentures	3,057	3,035
Line of credit		134,749
First lien credit facility	234,665
Second lien credit facility	74,912
Senior Notes	25,090	195,000
Contingent Earn-Out	7,070	6,530
Fair value | U.S. Treasury Bonds
Financial assets
Available for sale securities	1,448	1,422
Carrying amount
Financial assets
Collateral security account	2,812	3,165
Derivatives	11,081	4,005
Financial liabilities
Fixed rate debentures	1,636	1,636
Line of credit		134,749
First lien credit facility	234,665
Second lien credit facility	74,912
Senior Notes	165,368	296,053
Contingent Earn-Out	7,070	6,530
Carrying amount | U.S. Treasury Bonds
Financial assets
Available for sale securities	$ 1,636	$ 1,636
Senior Notes.
Fair value of financial instruments
Interest rate (as a percent)	9.00%		9.00%

FAIR VALUE OF FINANCIAL INSTR57

FAIR VALUE OF FINANCIAL INSTRUMENTS - FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets
Restricted investments in US Treasury Bonds - available for sale, at fair value	$ 1,448
Recurring
Assets
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,448	$ 1,422
Commodity derivatives	11,081	4,005
Recurring | Level 1
Assets
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,448	1,422
Recurring | Level 2
Assets
Commodity derivatives	$ 11,081	$ 4,005

DERIVATIVE FINANCIAL INSTRUME58

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Commodity derivatives	Dec. 31, 2015MMBTU / dbbl / d$ / Mcf
Oil | Swap | 01/01/16 - 03/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | bbl / d	250
Price per Mcf or Bbl	62.92
Oil | Collar | 01/01/16 - 03/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | bbl / d	500
Oil | Collar | 01/01/16 - 03/31/16 | Minimum
Derivative financial instruments
Price per Mcf or Bbl	50
Oil | Collar | 01/01/16 - 03/31/16 | Maximum
Derivative financial instruments
Price per Mcf or Bbl	64
Oil | Collar | 04/01/16- 06/30/16
Derivative financial instruments
Volume in BBl or MMBtu per day | bbl / d	250
Oil | Collar | 04/01/16- 06/30/16 | Minimum
Derivative financial instruments
Price per Mcf or Bbl	55
Oil | Collar | 04/01/16- 06/30/16 | Maximum
Derivative financial instruments
Price per Mcf or Bbl	69.97
Oil | Collar | 01/01/16- 12/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | bbl / d	500
Oil | Collar | 01/01/16- 12/31/16 | Minimum
Derivative financial instruments
Price per Mcf or Bbl	50
Oil | Collar | 01/01/16- 12/31/16 | Maximum
Derivative financial instruments
Price per Mcf or Bbl	71.50
Natural Gas | Swap | 01/01/16 - 03/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | MMBTU / d	5,000
Price per Mcf or Bbl	3.02
Natural Gas | Swap | 01/01/16 - 10/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | MMBTU / d	15,000
Price per Mcf or Bbl	2.93
Natural Gas | Swap | 01/01/16 12/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | MMBTU / d	15,000
Price per Mcf or Bbl	3.16
Natural Gas | Swap | 01/01/16 - 03/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | MMBTU / d	15,000
Price per Mcf or Bbl	3.18
Natural Gas | Swap | 03/01/16 10/31/16
Derivative financial instruments
Volume in BBl or MMBtu per day | MMBTU / d	10,000
Price per Mcf or Bbl	2.72

DERIVATIVE FINANCIAL INSTRUME59

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Instruments not Designated as Hedging Instruments (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments
Total	$ 20,083	$ 7,445
Commodity derivatives | Not designated as hedging instruments
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments
Realized cash settlements on hedges	13,007	(34)
Unrealized gain on hedges	7,076	7,479
Total	$ 20,083	$ 7,445

DERIVATIVE FINANCIAL INSTRUME60

DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Location (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair value of net derivatives
Derivative Assets, current	$ 11,081	$ 4,005
Commodity derivatives | Not designated as hedging instruments
Fair value of net derivatives
Derivative Assets	11,081
Derivative Liabilities, current		4,005
Commodity derivatives | Not designated as hedging instruments | Natural Gas
Fair value of net derivatives
Derivative Assets, current	7,816
Derivative Instruments and Hedges, Liabilities		3,611
Commodity derivatives | Not designated as hedging instruments | Oil
Fair value of net derivatives
Derivative Assets, current	$ 3,265
Derivative Instruments and Hedges, Liabilities		$ 394

OIL AND GAS INFORMATION (Detail

OIL AND GAS INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended			84 Months Ended	120 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2015
OIL AND GAS INFORMATION
Property acquisition-unproved		$ 184,410
Property acquisition-proved	$ 18,626	172,264
Exploration costs	3	32
Development costs	17,359	108,676
Total costs related to oil and gas activities	35,988	465,382
Increase in asset retirement cost	8,700	2,100
Aggregate capitalized costs
Unproved oil and gas properties	14,658	204,627			$ 14,658
Proved oil and gas properties	1,125,297	1,091,063			1,125,297
Gross capitalized costs	1,139,955	1,295,690			1,139,955
Less accumulated depreciation, depletion, amortization and impairment expense	977,270	542,194			977,270
Total aggregate capitalized costs relating to oil and gas activities	162,685	753,496			162,685
Results of operations from oil and natural gas producing activities
Revenues	83,734	145,385
Production costs	(49,557)	(48,357)
Accretion of asset retirement obligation	(2,857)	(2,521)
Impairment	(562,151)
Depreciation, depletion, amortization	(59,729)	(50,686)
Income (loss) from oil and gas producing activities	(590,560)	43,821
Oil and gas properties not subject to amortization
Development costs	365	1,127	$ 126	$ 13,040	14,658
Total oil and gas properties not subject to amortization	$ 365	$ 1,127	$ 126	$ 13,040	$ 14,658
Minimum
Development costs
Expected drilling period of wells	5 years
Maximum
Development costs
Expected drilling period of wells	8 years

OIL AND GAS RESERVE DATA (UNA62

OIL AND GAS RESERVE DATA (UNAUDITED) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)MMBoeMBoeBcfMMBblsMMcf	Dec. 31, 2014USD ($)MMBoeMBoeBcfMMBblsMMcf	Dec. 31, 2015MBoeMMBblsMMcf	Dec. 31, 2014MBoeMMBblsMMcf	Dec. 31, 2013MBoeBcfMMBblsMMcf
Proved reserves
Maximum period proved reserves to be drilled	5 years	5 years
Proved reserves (Equivalent Units)
Beginning of year | MBoe	71,348	33,745
Purchases of oil and gas reserves in place | MBoe		34,140
Discoveries and extensions | MBoe	845	4,403
Revisions of previous estimates	(26,314)	2,859
Production	(5,652)	(3,799)
End of year | MBoe	40,227	71,348
Proved developed reserves (Energy) | MBoe			32,339	42,439
Proved undeveloped reserves (Energy) | MBoe			7,888	28,909
Proved developed and undeveloped reserves (Energy) | MBoe	71,348	33,745	40,227	71,348	33,745
Undeveloped reserves transferred to developed reserves | MMBoe	0.8	3.9
Capital costs of conversion of proved undeveloped reserves to proved developed reserves | $	$ 12.9	$ 92.9
Oil.
Proved reserves
Beginning of year	16,794	16,074
Discoveries and extensions	69	481
Revisions of previous estimates	(2,944)	1,357
Production	(980)	(1,118)
End of year	12,939	16,794
Proved reserves (Equivalent Units)
Proved developed reserves			6,824	8,561
Proved undeveloped reserves			6,115	8,233
Proved developed and undeveloped reserves	16,794	16,074	12,939	16,794	16,074
Year-end net upward (downward) revision	(2.9)	1.4
Year-end upward (downward) revision due to pricing	(2.2)	(0.2)
Year-end upward (downward) revision due to performance	(0.7)	1.6
Year-end upward (downward) revision due to discoveries and extensions	0.07	0.5
Natural Gas
Proved reserves
Beginning of year | MMcf	327,328	106,028
Purchase of reserves in place | MMcf		204,839
Discoveries and extensions | MMcf	4,654	23,533
Revisions of previous estimates | MMcf	(140,218)	9,013
Production | MMcf	(28,033)	(16,085)
End of year | MMcf	163,731	327,328
Proved reserves (Equivalent Units)
Proved developed reserves | MMcf			153,093	203,272
Proved undeveloped reserves			10,638	124,056	28
Proved developed and undeveloped reserves | MMcf	327,328	106,028	163,731	327,328	106,028
Year-end net upward (downward) revision | Bcf	(140)	9
Year-end upward (downward) revision due to pricing | Bcf	(124)	5.7
Year-end upward (downward) revision due to performance | Bcf	(16)	3.3
Natural Gas | Citrus Acquisition Of Marcellus Assets
Proved reserves (Equivalent Units)
Proved undeveloped reserve added for the period | Bcf		93
Natural Gas | Marcellus Shale in Pennsylvania
Proved reserves
Discoveries and extensions | Bcf	4.7	18
Natural Gas | Wyoming
Proved reserves
Discoveries and extensions | Bcf		6

OIL AND GAS RESERVE DATA (UNA63

OIL AND GAS RESERVE DATA (UNAUDITED) - Standardized Measure of Discounted Future Net Cash Flows (Detail 2) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / bbl$ / Mcf	Dec. 31, 2014USD ($)$ / bbl$ / Mcf	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2012USD ($)
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
Future cash inflows			$ 862,751	$ 2,510,062
Future production costs and taxes			(503,702)	(967,776)
Future development costs			(180,790)	(390,057)
Future income tax expenses				(140,458)
Net future cash flows			178,259	1,011,771
Discounted at 10% for estimated timing of cash flows			(82,236)	(456,704)
Standardized measure of discounted future net cash flows	$ 555,067	$ 555,067	$ 96,023	$ 555,067	$ 475,001
Asset retirement obligations	55,800	69,700
Changes in Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves
Sales, net of production costs and taxes	(34,176)	(97,028)
Discoveries and extensions	2,540	40,720
Purchases of reserves in place		206,334
Changes in prices and production costs	(342,650)	(84,548)
Revisions of quantity estimates	(202,716)	47,425
Development costs incurred	(12,869)	(92,983)
Net changes in development costs	131,919	(134,255)
Interest factor-accretion of discount	55,506	50,371
Net change in income taxes	(54,059)	(25,354)
Changes in production rates (timing) and other	(28,277)	(16,582)
Net (decrease) increase	(459,044)	80,066
Balance at beginning of year	555,067	555,067
Balance at end of year	$ 96,023	$ 555,067
Oil prices weighted by production over lives of proved reserves | $ / bbl	42.81	86.71
Gas prices weighted by production over lives of proved reserves | $ / Mcf	1.74	3.22
Future cash flows estimated to be spent to develop proved undeveloped properties	$ 124,900

QUARTERLY INFORMATION (UNAUDI64

QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
QUARTERLY INFORMATION (UNAUDITED)
Revenues	$ 15,574	$ 20,805	$ 26,217	$ 25,777	$ 41,014	$ 40,513	$ 34,994	$ 34,202	$ 88,373	$ 150,723
Gross profit	2,966	8,514	12,938	12,692	23,974	26,618	25,235	24,136	37,110	99,963
Net income	(246,354)	(186,061)	(85,276)	(102,272)	1,340	3,726	10,754	8,210	(619,963)	24,030
Net income applicable to common stockholders	$ (246,357)	$ (186,063)	$ (85,279)	$ (102,274)	$ 1,338	$ 3,723	$ 10,752	$ 8,207	$ (619,973)	$ 24,020
Earnings per share
Basic (in dollars per share)	$ (2.89)	$ (2.29)	$ (1.05)	$ (1.26)	$ 0.02	$ 0.05	$ 0.15	$ 0.11	$ (7.55)	$ 0.31
Diluted (in dollars per share)	$ (2.89)	$ (2.29)	$ (1.05)	$ (1.26)	$ 0.02	$ 0.05	$ 0.15	$ 0.11	$ (7.55)	$ 0.31

INTEREST AND OTHER INCOME (Deta

INTEREST AND OTHER INCOME (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
INTEREST AND OTHER INCOME
Net proceeds from sale of surface lots	$ 5.6

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ / shares in Units, $ in Thousands, shares in Millions	Aug. 11, 2014USD ($)itemshares	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)
ACQUISITIONS
Common Stock issued for Citrus Acquisition			$ 41,400
Purchase price
Shares issued from acquisition			41,400
Fair values of the assets acquired and liabilities assumed
Asset Retirement Obligations		$ (31,405)	(29,771)	$ (26,785)
Citrus Acquisition Of Marcellus Assets
ACQUISITIONS
Number of other working interest owners | item	2
Common Stock issued for Citrus Acquisition			41,400
Purchase price
Cash consideration	$ 312,500		312,500
Shares issued from acquisition			41,400
Closing adjustments			(7,828)
Fair value of earn-out provision		730	6,340
Fair value of farm-out provision		$ (3,410)	3,410
Total purchase price			355,822
Maximum contingent consideration payout included as part of the purchase and sale agreement			$ 8,500
Probability percentage of achieving full contingent consideration payout			90.00%
Fair values of the assets acquired and liabilities assumed
Proved oil and gas properties			$ 171,383
Unproved oil and gas properties			184,752
Asset Retirement Obligations			(313)
Total purchase price			355,822
Unaudited Pro Forma Condensed Combined Financial Information
Revenues			212,518
Income from Operations			57,800
Net income			$ 52,395
Diluted net income per share | $ / shares			$ 0.65
Citrus Acquisition Of Marcellus Assets | Common stock
ACQUISITIONS
Number of shares exchanged | shares	6.7		6.7
Common Stock issued for Citrus Acquisition	$ 41,400		$ 41,400
Purchase price
Shares issued from acquisition	$ 41,400		$ 41,400

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Aug. 06, 2016	Mar. 07, 2016	Feb. 23, 2016	Feb. 18, 2016	Jan. 06, 2016	Jan. 05, 2016	Jan. 01, 2016	Dec. 28, 2015	Jun. 24, 2015	Mar. 31, 2016
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
Number of consecutive days the market value or bid price below minimum requirement The NASDAQ Capital Market ("NASDAQ")									30 days
Minimum closing bid price for continued listing on The NASDAQ Capital Market ("NASDAQ") (in dollars per share)									$ 1
Grace period to satisfy the "Rule" (in calendar day)									180 days
Minimum number of consecutive business days the market value or bid price is required to be above the NASDAQ threshold.									10 days
Subsequent Event
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
Number of consecutive days the market value or bid price below minimum requirement The NASDAQ Capital Market ("NASDAQ")				30 days
Minimum closing bid price for continued listing on The NASDAQ Capital Market ("NASDAQ") (in dollars per share)		$ 1
Minimum market value of publicly held shares for continued listing on The NASDAQ Capital Market ("NASDAQ")				$ 15,000,000
Grace period to satisfy the "Rule" (in calendar day)				180 days
Required market value of publicly held shares for a minimum of 10 consecutive business days during grace period to satisfy the "Rule"				$ 15,000,000
Minimum number of consecutive business days the market value or bid price is required to be above the NASDAQ threshold.		10 days		10 days
Mr. Keeler | Subsequent Event
Management
Period for written notice for earlier termination by the Consultant							14 days
Lump sum payment						$ 306,250
Mr. Skelly
Management
Lump sum payment to waive reimbursement of COBRA premiums								$ 5,000
Mr. Skelly | Subsequent Event
Management
Lump sum payment					$ 275,000
Ms. Somalya | Subsequent Event
Management
Period for written notice for earlier termination by the Consultant						14 days
Lump sum payment	$ 250,000
Mr. Gelman | Subsequent Event
Management
Period for written notice for earlier termination by the Consultant										14 days
Lump sum payment			$ 121,000