W&T Offshore acquires eight oil, gas producing assets in Gulf of Mexico
(WO) – W&T Offshore, Inc. has completed the acquisition of working interests in eight shallow water oil and gas producing assets in the central and eastern shelf region of the Gulf of Mexico (“GOM”) from an undisclosed private seller. The assets were acquired for a gross consideration of $32 million. W&T used its cash on the balance sheet to pay the net purchase price. Key highlights of the transaction include:
- Additional producing properties located within W&T’s existing area of operations in water depths ranging from 25 to 265 ft.
- High average working interest of around 72%.
- Estimated production as of September 12, 2023, of approximately 2,400 boed (42% oil) – around two thirds of the production is operated.
- Adds proved reserves of 3.2 MMboe (49% oil) – 100% of the reserves are proved developed.
In addition, the 2P reserves for the acquired properties are estimated to be 5.1 MMboe (48% oil).
Tracy W. Krohn, Chairman, President and CEO, commented, “All of the producing properties included in the acquisition announced today meet the time-tested investment criteria we have used for our prior successful acquisitions. These assets have strong production rates, are generating positive free cash flow, and have a solid base of proved developed reserves and identified upside potential with strong 2P reserves.”
“We also see the opportunity to reduce operating costs to further increase free cash flow. We continue to utilize our strong cash position and expertise in acquiring complementary GOM assets to enhance the scale of W&T. Acquisitions have been a key component of how we have grown reserves and production at W&T.”