HOUSTON, July 8, 2005 /PRNewswire-FirstCall via COMTEX/ -- W&T Offshore, Inc. (NYSE: WTI) today announced that it has closed on an agreement to acquire oil and gas properties and provided an update on its current operations and exploratory success.
W&T Offshore completed the acquisition of East Cameron 321 from Marathon on June 28, 2005, with an effective date of May 1, 2005. W&T estimates the acquired reserves, at the effective date, to be approximately 9.0 Bcfe. The property acquired is currently producing approximately 1,300 gross barrels of oil and 6,000 mcf of gross gas per day. As a result of acquiring the remaining 25% working interest, W&T now owns 100% working interest and has become operator at East Cameron 321.
"We have already identified several work opportunities in our detailed field study of East Cameron 321 and we anticipate implementing this plan, depending on rig availability, by the fourth quarter," said Tracy W. Krohn, Chairman and Chief Executive Officer. "Furthermore, we continue to execute on our strategy of acquiring assets in all pricing environments at fair prices.
"We continue to have success with our exploration and development program. During the second quarter, we successfully drilled five exploration wells and one development well.
Field Name/Well Category Working Interest % Eugene Island 218 #D-5ST Exploration 100.0% Eugene Island 219 #E-8ST Exploration 100.0% Eugene Island 53 #G-1ST Development 14.0% Ewing Bank 949 #2st3/4 Exploration 100.0% High Island A568 #A-19 Exploration 33.3% West Cameron 328 #2 Exploration 25.0% We were unsuccessful at one exploration well location." Field Name/Well Category Working Interest % Eugene Island 93 #14 Exploration 23.3%
"This brings our success rate for the first two quarters of 2005 to 10 out of 13 drilled," continued Mr. Krohn. "With half the year behind us, we are on track with both our exploration and development programs."
"We are pleased with initial rates of the wells that have been brought on production during the second quarter," added Mr. Krohn. "We believe that we are on target to meet or exceed the high end of the range of our second quarter 2005 production guidance of 18.3 Bcfe to 19.3 Bcfe. We are also on target for our full year 2005 production guidance of 83.1 Bcfe to 87.4 Bcfe. Recently, we were notified that Transco's North High Island Gathering System lateral pipeline that was planned to be temporarily shut-in for repairs in the 3rd quarter has been delayed until 2006. At this time, we are not adjusting our production guidance until we have assurance that such delay is certain."
All facility projects that W&T previously announced are currently underway. Although the Company has experienced some minor delays due to either weather or equipment availability, it expects to meet 3rd quarter expectations.
The planned 3rd and 4th quarter development drilling is also progressing as expected. For the projects expected to be completed in the 3rd quarter, only two projects are expected to slide from the 3rd quarter to the 4th quarter due to rig availability. The Company does not expect this to affect the production build up for the 3rd or 4th quarter. Meanwhile, the 4th quarter projects are still on schedule.
During the quarter, W&T signed a contract with Compagnie Generale de Geophysique (CGG) to acquire additional seismic data. The contract will cover approximately 1,213 OCS Blocks in the central GOM from Garden Banks to Mississippi Canyon.
"We are also pleased to report that Tropical Storm Cindy had very little impact on our production or timing of any of our on-going projects. As for Hurricane Dennis, we continue to monitor this situation very closely and will provide any updates as they become available. We have begun evacuating non- essential personnel from our eastern Gulf of Mexico rigs and platforms, which should be complete by the end of business today. At this time, no production has been shut-in from these fields," Mr. Krohn stated.
Second Quarter 2005 Conference Call
The Company will hold its conference call to discuss its second quarter 2005 financial results and recent developments at 10:00 a.m. Eastern (9:00 a.m. Central) on Tuesday, August 9, 2005. To participate in the call, dial (303) 262-2141 and ask for the W&T Offshore call at least 10 minutes prior to the start time, or access it live over the Internet by logging onto the web at http://www.wtoffshore.com , on the "IR Home" page of the "Investors" section of the Company's website. To listen to the live call on the web, please visit the website at least fifteen minutes early to register, download and install any necessary audio software.
For those who cannot listen to the live web cast, a replay of the call will be archived in the investor relations section of the Company's website. Additionally, a telephonic replay will be available through August 16, 2005, and may be accessed by calling (303) 590-3000 and using the pass code 11034458.
About W&T Offshore
Founded in 1983, W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deep water, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 100 fields in federal and state waters and a majority of its daily production is derived from wells it operates. For more information on W&T Offshore, please visit its Web site at http://www.wtoffshore.com .
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations and other factors discussed in our Registration Statement on Form S-1 filed with the Securities and Exchange Commission (http://www.sec.gov ).
Manuel Mondragon, Assistant Treasurer
Ken Dennard / firstname.lastname@example.org
Lisa Elliott / email@example.com
DRG&E / 713-529-6600
SOURCE W&T Offshore, Inc.
Manuel Mondragon, Assistant Treasurer of W&T Offshore, Inc., +1-713-297-8024, or firstname.lastname@example.org ; or Ken Dennard, email@example.com , or Lisa Elliott, firstname.lastname@example.org, both of DRG&E, +1-713-529-6600, for W&T Offshore, Inc.