HOUSTON, May 3, 2010 /PRNewswire via COMTEX/ --W&T Offshore, Inc. (NYSE: WTI) announced today that on April 30, 2010 it completed the acquisition (through its wholly owned subsidiary, W&T Energy VI, LLC) of all of the interests of Total E&P USA, Inc. ("Total") in three federal offshore lease blocks located in the Gulf of Mexico for a purchase price of $150 million, subject to customary closing adjustments, with an effective date of January 1, 2010. W&T acquired a 100% working interest in Mississippi Canyon block 243 ("Matterhorn") and a 64% working interest in Viosca Knoll blocks 822 and 823 ("Virgo"). The fields are currently producing and the net average daily production rate for March 2010 was 5,664 barrels of oil equivalent per day, of which approximately 67% were oil and natural gas liquids. The estimated proved oil and natural gas reserves on the effective date (determined using the unweighted average of first-day-of-the-month commodity prices over the 12-month period ending December 31, 2009) were 11.6 million barrels of oil equivalent ("Boe").
Tracy Krohn, Chairman and Chief Executive Officer, stated, "The acquisition of Total's interests in Matterhorn and Virgo, both highly prolific deepwater fields with additional development and exploration potential meets all of our acquisition criteria. These fields are also within close proximity of our existing assets, thereby expanding our ability to bring potential future deepwater discoveries on production quicker."
About W&T Offshore
W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and holds working interests in approximately 77 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 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, uncertainties and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2009 (www.sec.gov).
Contacts: Janet Yang, Finance Manager firstname.lastname@example.org 713-297-8024 Ken Dennard / email@example.com Lisa Elliott / firstname.lastname@example.org DRG&E / 713-529-6600
SOURCE W&T Offshore, Inc.