(W&T Offshore, 5.Apr.2022) — W&T Offshore, Inc. (NYSE: WTI) has acquired the remaining working interests in the oil and gas producing properties purchased earlier this year from an undisclosed private seller.
The assets are located in Federal shallow waters in the central region of the Gulf of Mexico at Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields. The transaction had an effective date and closing date of 1 April 2022. Cash consideration of approximately $17.5mn was paid to the seller using cash on hand.
Key highlights of the transaction are as follows:
- Adds internally-estimated proved reserves of approximately 1.4 million barrels of oil equivalent (Boe) (70% oil) and proved and probable, or 2P, reserves of 2.0 million Boe (75% oil) as of 31 December 2021 assuming strip pricing as of 2 March 2022;
- Estimated net sales rate of approximately 900 Boe per day (~80% oil);
- Adds an average of 20% working interest in over 50 gross producing wells currently operated by the company across three shallow water fields; and
- Provides additional upside from additional pay sands in existing well bores and potential opportunities for future drilling.
Tracy W. Krohn, Chairman and Chief Executive Officer, commented, “We were pleased when we were able to purchase our initial interests in these fields in the first quarter of the year and this transaction further consolidates our ownership over those assets. As was noted when we announced the original acquisition earlier this year, the assets are very complementary to our existing assets with a solid base of proved reserves and strong free cash flow and upside potential. Acquisitions such as this one are one way that we create value for our shareholders, and we will continue to seek other accretive transactions.”
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