Warren Resources (WRES) 8-K Regulation FD Disclosure

Exhibit 99.1

MOR-1 UNITED STATES BANKRUPTCY COURT

CASE NAME:	Warren Resources, Inc., et al.	PETITION DATE:	6/2/2016
CASE NUMBER:	16-32760	DISTRICT OF TEXAS:	Southern
		DIVISION:	Houston

MONTHLY OPERATING REPORT SUMMARY: June 2016

MONTH	June			July		August		September		October
REVENUES (MOR-6)		4,988,081					—		—		—
INCOME BEFORE INT; DEPREC./TAX (MOR-6)		(1,169,637	)				—		—		—
NET INCOME (LOSS) (MOR-6)		(10,162,825	)				—		—		—
PAYMENTS TO INSIDERS (MOR-9)		57,930			—		—		—		—
PAYMENTS TO PROFESSIONALS (MOR-9)		—			—		—		—		—
TOTAL DISBURSEMENTS (MOR-7)		(10,302,272	)		—		—		—		—

***The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***

REQUIRED INSURANCE MAINTAINED             AS OF SIGNATURE DATE		EXP. DATE
CASUALTY	YES (X) NO (  )		09-01-2016
LIABILITY	YES (X) NO (  )		09-01-2016
VEHICLE	YES (X) NO (  )		09-01-2016
WORKER’S	YES (X) NO (  )		09-01-2016
OTHER	YES (X) NO (  )		09-01-2016

	CIRCLE ONE
Are all accounts receivable being collected within terms?	Yes
Are all post-petition liabilities, including taxes, being paid within terms?		No
Have any pre-petition liabilities been paid?		No
If so, describe:            Certain payments were made pursuant to First Day Orders
Are all funds received being deposited into DIP bank accounts?		No
Were any assets disposed of outside the normal course of business?	Yes
If so, describe
Are all U.S. Trustee Quarterly Fee Payments current?		No
What is the status of your Plan of Reorganization?Filed on July 18, 2016

ATTORNEY NAME:	Timothy A. Davidson II
FIRM NAME:	Andrews Kurth LLP
ADDRESS:	600 Travis
	Suite 4200
CITY, STATE, ZIP:	Houston, Texas 77002
TELEPHONE/FAX:	713-220-3810

I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct.
SIGNED  X
	(ORIGINAL SIGNATURE)
TITLE:	President, Chief Executive Officer and Chief Restructuring Officer

MOR-1

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

COMPARATIVE BALANCE SHEETS

ASSETS	FILING DATE (1) June 2, 2016			MONTH June 2016			MONTH July 2016		MONTH August 2016		MONTH September 2016
CURRENT ASSETS
Cash		13,918,623			11,090,776			—		—		—
Accounts Receivable, Net		10,235,813			9,275,942			—		—		—
Inventory: Lower of Cost or Market		—			—			—		—		—
Prepayments and other current assets		5,656,625			5,188,894			—		—		—
Investments		6,087,653			1,844,008			—		—		—
Other		—			—			—		—		—
TOTAL CURRENT ASSETS		35,898,715			27,399,619			—		—		—
PROPERTY, PLANT & EQUIP. @ COST		27,636,990			27,667,366			—		—		—
Less Accumulated Depreciation		(26,305,548	)		(26,365,769	)		—		—		—
NET BOOK VALUE OF PP & E		1,331,442			1,301,597.45			—		—		—
OTHER ASSETS
1. Deferred Financing Costs		10,598,434			10,400,273			—		—		—
2. Oil & Gas Properties		115,893,656			113,741,170			—		���		—
3. Oil & Gas Properties, Other		14,657,923			14,657,923			—		—		—
4. Notes Receivable		2,948,592			2,948,592			—		—		—
5. Midstream Assets		20,012,903			19,895,178			—		—		—
TOTAL ASSETS	$	201,341,665			190,344,352.55			—		—		—

(1) Information as of May 31, 2016.

MOR-2 Revised 07/01/98        

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

COMPARATIVE BALANCE SHEETS

LIABILITIES & OWNER’S EQUITY	FILING DATE (1) June 2, 2016			MONTH June 2016			MONTH July 2016		MONTH August 2016		MONTH September 2016
LIABILITIES
POST-PETITION LIABILITIES(MOR-4)		6,287,818			7,713,081			—		—		—
PRE-PETITION LIABILITIES
Notes Payable - Secured		—			—			—		—		—
Priority Debt		477,338,089			477,515,421			—		—		—
Federal Income Tax		—			—			—		—		—
FICA/Withholding		—			—			—		—		—
Unsecured Debt		—			—			—		—		—
Other		74,709,462			72,147,423			—		—		—
TOTAL PRE-PETITION LIABILITIES		552,047,550			549,662,844			—		—		—
TOTAL LIABILITIES		558,335,368			557,375,925			—		—		—
OWNER’S EQUITY (DEFICIT)
PREFERRED STOCK		128,437			128,437			—		—		—
COMMON STOCK		8,520			8,520			—		—		—
ADDITIONAL PAID-IN CAPITAL		517,385,291			517,510,247			—		—		—
RETAINED EARNINGS: Filing Date		(874,515,951	)		(884,678,776	)		—		—		—
RETAINED EARNINGS: Post Filing Date		—			—			—		—		—
TOTAL OWNER’S EQUITY (NET WORTH)		(356,993,703	)		(367,031,572	)		—		—		—
TOTAL LIABILITIES & OWNERS EQUITY	$	201,341,665		$	190,344,353		$	0	$	0		0

(1) Information as of May 31, 2016.

MOR-3 Revised 07/01/98        

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

SCHEDULE OF POST-PETITION LIABILITIES

	FILING DATE (1) June 2, 2016		MONTH June 2016		MONTH July 2016		MONTH August 2016		MONTH September 2016
TRADE ACCOUNTS PAYABLE		1,042,454		930,910		—		—		—
TAX PAYABLE
Federal Payroll Taxes		—		—		—		—		—
State Payroll Taxes		—		—		—		—		—
Ad Valorem Taxes		883,177		912,338		—		—		—
Other Taxes		587,850		633,799		—		—		—
TOTAL TAXES PAYABLE		1,471,026		1,546,136		—		—		—
SECURED DEBT POST-PETITION		—		—		—		—		—
ACCRUED INTEREST PAYABLE		—		—		—		—		—
OTHER ACCRUED LIABILITIES
1. PAYROLL		189,416		225,437		—		—		—
2. LEASE OPERATING & G&A (2), (3)		2,039,218		3,555,832		—		—		—
3. ROYALTIES		1,545,704		1,454,765		—		—		—
TOTAL POST-PETITION LIABILITIES (MOR-3)	$	6,287,818	$	7,713,081	$	—	$	—	$	—

(1) Information as of May 31, 2016.

(2) Reflects accrued but unpaid professional fees; payment requires court approval

(3) Pursuant to court order, prepetition lease operating expenses continue to be due and payable post petition.

MOR-4 Revised 07/01/98        

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

AGING OF POST-PETITION LIABILITIES: JUNE 2016

DAYS	TOTAL		TRADE ACCOUNTS		FEDERAL TAXES		STATE TAXES		AD VALOREM, OTHER TAXES		OTHER
0-30		7,713,081		930,910		—		—		1,546,136		5,236,034
31-60		—		—		—		—		—		—
61-90		—		—		—		—		—		—
91+		—		—		—		—		—		—
TOTAL	$	7,713,081	$	930,910	$	0	$	0	$	1,546,136	$	5,236,034

AGING OF ACCOUNTS RECEIVABLE (2)

MONTH	June 2, 2016 (1)		June 2016		July 2016		August 2016		September 2016
0-30 DAYS		6,072,541		5,983,435		—		—		—
31-60 DAYS		—		—		—		—		—
61-90 DAYS		—		—		—		—		—
91+ DAYS		4,163,272		3,292,507		—		—		—
TOTAL	$	10,235,813	$	9,275,942	$	0	$	0	$	0

(1) Information as of May 31, 2016.

(2) Warren’s Acounts Receivable accounts do not represent any Oil and Gas production that has not been sold.

MOR-5

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

STATEMENT OF INCOME (LOSS)

	MONTH June 2016			MONTH July 2016		MONTH August 2016		MONTH September 2016		FILING TO DATE
REVENUES (MOR-1)		4,988,081			—						4,988,081
TOTAL COST OF REVENUES		(2,660,189	)								(2,660,189	)
GROSS PROFIT		2,327,892			—		—		—		2,327,892
OPERATING EXPENSES:
Selling & Marketing		—									—
General & Administrative		(3,497,529	)								(3,497,529	)
Insiders Compensation		—									—
Professional Fees		—									—
Other		—									—
TOTAL OPERATING EXPENSES		(3,497,529	)		—		—		—		(3,497,529	)
INCOME BEFORE INT, DEPR/TAX (MOR-1)		(1,169,637	)		—		—		—		(1,169,637	)
INTEREST EXPENSE (1)		(3,441,934	)								(3,441,934	)
DEPRECIATION		(2,601,328	)								(2,601,328	)
OTHER (INCOME) EXPENSE (2)		(2,949,926	)								(2,949,926	)
OTHER ITEMS		—									—
TOTAL INT, DEPR & OTHER ITEMS		(8,993,188	)		—		—		—		(8,993,188	)
NET INCOME BEFORE TAXES		(10,162,825	)		—		—		—		(10,162,825	)
FEDERAL INCOME TAXES		—			—		—		—		—
NET INCOME (LOSS) (MOR-1)		(10,162,825	)		—		—		—		(10,162,825	)

Accrual Accounting Required, Otherwise Footnote with Explanation.

(1) Deferred Financing Costs of ($198,161) and Interest Expenses of ($3,243,773)

(2) Accretion of asset retirement obligations of ($249,913), Loss on derivative instruments of ($2,689,199), Gain on USTB investment of $35,185, and Loss on contingent consideration of ($46,000)

MOR-6

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

CASH RECEIPTS AND DISBURSEMENTS	MONTH June 2016			MONTH July 2016		MONTH August 2016		MONTH September 2016		FILING TO DATE
1. CASH-BEGINNING OF MONTH (3)		12,858,577			—		—		—		12,858,577
RECEIPTS:
2. CASH SALES		—			—		—		—		—
3. COLLECTION OF ACCOUNTS RECEIVABLE		8,515,748			—		—		—		8,515,748
4. LOANS & ADVANCES (attach list)		(0	)		—		—		—		(0	)
5. SALE OF ASSETS		—			—		—		—		—
6. OTHER (attach list)		—			—		—		—		—
TOTAL RECEIPTS		8,515,748			—		—		—		—
(Withdrawal) Contribution by Individual Debtor MFR-2*		—			—		—		—		—
DISBURSEMENTS:
7. NET PAYROLL		(569,986	)		—		—		—		(569,986	)
8. PAYROLL TAXES PAID		—			—		—		—		—
9. SALES, USE & OTHER TAXES PAID		(57,036	)		—		—		—		(57,036	)
10. SECURED/RENTAL/LEASES		—			—		—		—		—
11. UTILITIES & TELEPHONE		—			—		—		—		—
12. INSURANCE		—			—		—		—		—
13. INVENTORY PURCHASES		—			—		—		—		—
14. VEHICLE EXPENSES		—			—		—		—		—
15. TRAVEL & ENTERTAINMENT		—			—		—		—		—
16. REPAIRS, MAINTENANCE & SUPPLIES		(2,228,526	)		—		—		—		(2,228,526	)
17. ADMINISTRATIVE & SELLING		(227,951	)		—		—		—		(227,951	)
18. OTHER (1)		(1,558,563	)		—		—		—		(1,558,563	)
TOTAL DISBURSEMENTS FROM OPERATIONS		(4,642,062	)		—		—		—		—
19. PROFESSIONAL FEES		—			—		—		—		—
20. U.S. TRUSTEE FEES		—			—		—		—		—
21. OTHER REORGANIZATION EXPENSES (2)		(5,660,210	)		—		—		—		(5,660,210	)
TOTAL DISBURSEMENTS		(10,302,272	)		—		—		—		—
22. NET CASH FLOW		(1,786,524	)		—		—		—		—
23. CASH - END OF MONTH (MOR-2) (3)		11,072,052			—		—		—		11,072,052

(1) Other, includes royalty payments on land assets totaling $1,558,563.

(2) Other Reorganization Expenses, includes First Lien Adequate Protection ($5,635,210.16) and Debtor-In-Possesion facility administration fee ($25,000).

(3) Closing cash balance does not reconcile to balance sheet cash due to the exclusion of one bank account held in the name of “Warren Development Corp.” totalling $18,722.46. This bank account has remained inactive for over six months.

MOR-7

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

CASH ACCOUNT RECONCILIATION

MONTH OFJune 2016                              

BANK NAME	JP MORGAN CHASE			JP MORGAN CHASE		JP MORGAN CHASE			JP MORGAN CHASE		JP MORGAN CHASE			JP MORGAN CHASE			JP MORGAN CHASE			JP MORGAN CHASE		MERRILL LYNCH			MERRILL LYNCH
ACCOUNT NUMBER		3751			6115		5209			2888		3794			5477			7471			2692		7789	(2)		7B88
ACCOUNT TYPE	DISBURSEMENT			CHECKING		OPERATIONS			CHECKING		CDA BY GSO			PAYROLL			OPERATIONS			CD-COLLATERAL		STOCK OPTIONS			STOCK OPTIONS		TOTAL (1)
BANK BALANCE	$	5,986,143		$	—	$	—		$	—	$	—		$	109,667		$	7,089,815		$	17,140	$	17,007		$	4,081	$	13,223,853
DEPOSITS IN TRANSIT	$	—		$	—	$	—		$	—	$	—		$	—		$	—		$	—	$	—		$	—	$	—
OUTSTANDING CHECKS	$	(2,151,805	)	$	—	$	—		$	—	$	—		$	—		$	5		$	—	$	—		$	—	$	(2,151,801	)
ADJUSTED BANK BALANCE	$	3,834,338		$	—	$	—		$	—	$	—		$	109,667		$	7,089,820		$	17,140	$	17,007		$	4,081	$	11,072,052
BEGINNING CASH - PER BOOKS	$	1,498,207		$	—	$	—		$	—	$	10,038,025		$	121,289		$	1,162,828		$	17,140	$	17,007		$	4,081	$	12,858,577
RECEIPTS	$	5,388,559		$	—	$	289,369		$	—	$	—		$	—		$	2,837,820		$	—	$	—		$	—	$	8,515,748
TRANSFERS OUT OF ACCOUNT	$	—		$	—	$	(289,369	)	$	—	$	(10,038,025	)	$	—		$	—		$	—	$	—		$	—	$	(10,327,394	)
TRANSFERS INTO ACCOUNT	$	1,296,864		$	—	$	—		$	—	$	—		$	304,000		$	8,726,530		$	—	$	—		$	—	$	10,327,394
CHECKS/OTHER DISBURSEMENTS	$	(4,349,292	)	$	—	$	—		$	—	$	—		$	(315,622	)	$	(5,637,358	)	$	—	$	—		$	—	$	(10,302,272	)
ENDING CASH - PER BOOKS	$	3,834,338		$	—	$	—		$	—	$	—		$	109,667		$	7,089,820		$	17,140	$	17,007		$	4,081	$	11,072,052

(1) Closing cash balance does not reconcile to balance sheet cash due to the exclusion of one bank account held in the name of “Warren Development Corp.” totalling $18,722.46. This bank account has remained inactive for over six months.

(2) As of July 21, 2016 a bank statement had not been received for Merrill Lynch account ending #7789 for the period ending June 30, 2016.

MOR-8

CASE NAME:	Warren Resources, Inc., et al.
CASE NUMBER:	16-32760

PAYMENTS TO INSIDERS AND PROFESSIONALS

Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary).

INSIDERS: NAME/COMP TYPE	MONTH June 2016		MONTH July 2016		MONTH August 2016		MONTH September 2016
1. James A Watt		17,691		—		—		—
2. Frank T. Smith Jr.		17,684		—		—		—
3. John R. Powers		11,484		—		—		—
4. Zach Waite		11,071		—		—		—
TOTAL INSIDERS (MOR-1)		57,930		—		—		—
PROFESSIONALS	MONTH June 2016		MONTH July 2016		MONTH August 2016		MONTH September 2016
1. Andrews Kurth LLP		—		—		—		—
2. Jefferies LLC		—		—		—		—
3. Deloitte Transactions and Business Analytics LLP		—		—		—		—
4. Epiq Systems		—		—		—		—
5. Kirkland & Ellis LLP		—		—		—		—
6. Bracewell & Giuliani LLP		—		—		—		—
7. Stroock & Stroock & Lavan LLP		—		—		—		—
TOTAL PROFESSIONALS (MOR-1)		—		—		—		—

MOR-9