UPDATE: Pritchard Capital Partners Reduces PT to $3.50 on Warren Resources; Tar & Ranger Results

Pritchard Capital Partners reduces its price target from $4 to $3.50 on Neutral-rated Warren Resources (NASDAQ: WRES) on concerns of latest well results.

Pritchard Capital Partners notes, "Our price target is just over a 10% discount to NAV over our concerns about the company's latest Tar and Ranger results. First, we are no longer giving credit to the Ranger probables ($0.10/share) after the latest two wells had initial 30 day rates of 55 bo/d. Second, we are now allocating only $0.40/share to the Tar probables vs. $0.60/share previously after the latest three wells had average initial 30 day rates of 135 bo/d, which is 24% less than the average initial rate of the nine wells last year; and third, we are now valuing the 2011 oil proved reserves at $5/share vs. $5.40 previously since we have lowered our expectations for Midway Sunset pricing starting in 2014."

WRES closed at $2.62 on Friday.