W&T Offshore announced their new acquisition of the remaining working interests in oil and gas production properties. These were shelled by a private seller whose name remains anonymous.
These assets’ location is on Federal shallow waters in the Gulf of Mexico. These are at Ship Shoal 230, South Marsh Iland 27/Vermilion 191, and South Marsh Island 73 field.
The transaction date was April 1 for the amount of $17.5 million, paid to the seller using cash on hand.
Key points on the transaction:
- It’s adding approximately 1.4 million barrels of oil equivalent (Boe) in internally-estimated proved reserves.
- According to the estimation, a net sales rate of approximately 900 Boe per day could be a net sales rate.
- The working interest can grow a 20% in over 50 gross production wells. The Company currently manages these across three shallow-water fields.
- This transaction will bring additional advantages from pay sands in the existing wells bores. Also is possible to have 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. This transaction further consolidates our ownership over those assets. As noted when we announced the original acquisition earlier this year, the assets complement our existing assets. That is a solid base of proved reserves, strong free cash flow, and upside potential. Acquisitions such as this one are one way to create value for our shareholders, and we will continue to seek other accretive transactions.”
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This is an independent oil and natural gas producer for those who are not familiar with W&T Offshore. Their operation is in the Gulf of Mexico. Part of their success is the acquisitions, explorations, and development that keeps on growing. All of that made it possible that the majority of the Company’s production comes from the wells it operates.
