New York, January 23, 2024 - PrismMarketView - W&T Offshore, Inc. (NYSE: WTI) topped the PRISM Emerging Oil & Gas Index on Monday after announcing it had completed the acquisition of six fields in shallow waters of the Gulf of Mexico. The $72 million deal was funded from the Company’s cash on hand.
The transaction provides W&T Offshore with strong producing properties, all of which are 100% working interest with an average of 82% net revenue interest, and are located adjacent to W&T’s existing area of operations.
The six fields, which include Eugene Island 064, Main Pass 061, Mobile 904, Mobile 916, South Pass 049 and West Delta 073 have estimated production that has ranged from approximately 3,700 to 5,700 barrels of oil equivalent per day (BOEPD) (around 68% liquids) during the period month-to-date January 19, 2024.
W&T Offshore stated it believes that it can meaningfully increase production on these properties through workovers, recompletions and facility repairs. The assets are located in water depths ranging between approximately 15 and 400 feet.
Commenting on the deal, Tracy W. Krohn, Chairman, President and CEO, said, “We are very pleased to announce our second accretive acquisition of GOM producing properties in the last four months. We expect to realize synergies on these new assets due to their close proximity to our existing fields, which can reduce operating costs and further increase free cash flow.
W&T Offshore’s market cap stands at 422.133 million, and more than 2.2 million shares changed hands following the news on Monday.
“Combined with our acquisition last fall, we have added almost 22 million barrels of oil equivalent of proved reserves for about $104 million, or around $4.75 per BOE, which we believe is a very attractive price for properties with significant upside. We plan to continue to utilize our strong balance sheet and expertise in acquiring complementary GOM assets to further enhance the scale of W&T. Acquisitions continue to be a key component of how we build and grow value, reserves and production at W&T, and we are well positioned to continue to execute on our successful strategy.”
“Combined with our acquisition last fall, we have added almost 22 million barrels of oil equivalent of proved reserves for about $104 million, or around $4.75 per BOE, which we believe is a very attractive price for properties with significant upside. We plan to continue to utilize our strong balance sheet and expertise in acquiring complementary GOM assets to further enhance the scale of W&T. Acquisitions continue to be a key component of how we build and grow value, reserves and production at W&T, and we are well positioned to continue to execute on our successful strategy.”
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development. As of September 30, 2023, the Company had working interests in 54 fields in federal and state waters (which include 45 fields in federal waters and nine in state waters). The Company has under lease approximately 602,100 gross acres (446,800 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 440,600 gross acres on the conventional shelf, approximately 153,500 gross acres in the deepwater and 8,000 gross acres in Alabama onshore. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com.
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