HOUSTON, June 16 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) today provided an update on its recent drilling activities.
Thus far during the second quarter, W&T Offshore drilled or participated in the drilling of eight commercially successful wells, as follows:
Lease Name/Well Category Working Interest % Eugene Island 175 H-5 Exploration/Shelf 25% Eugene Island 175 I-2ST Exploration/Shelf 25% High Island 111 A-11 Exploration/Shelf 62% High Island A-376 #7 Exploration/Shelf 30% Main Pass well Exploration/Shelf 75% Ship Shoal 224 E-18 Exploration/Deep Shelf 47% Ship Shoal 314 A-2ST Exploration/Shelf 75% Ship Shoal 224 E-19 Development/Shelf 67%
The Company also drilled or participated in the drilling of two non- commercial wells, as follows:
Lease Name/Well Category Working Interest % High Island 38 #2 Exploration/Deep Shelf 53% Ship Shoal 317 #1 Exploration/Shelf 75%
The Company also announced that it has sanctioned for development its Green Canyon Block 646 prospect ("Daniel Boone"). The discovery well was drilled in 2004 to a total measured depth of 12,365 feet. Daniel Boone is located approximately 119 miles off the coast of Louisiana in 4,230 feet of water. The discovery well encountered approximately 275 feet of high quality oil and natural gas-bearing sands. W&T intends to produce the well via a subsea production system tied back to the Front Runner spar, which is operated by Murphy Oil. W&T owns a 60% working interest in Daniel Boone and is the operator.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "While I am pleased that we are twelve for fourteen so far this year for an 86% success rate, we are disappointed that we had two non-commercial wells. However, we remain encouraged and excited about our 2008 drilling program. Currently we have 9 rigs running and remain active. We recently brought on production at Ship Shoal 224 E-18, Ship Shoal 300 A-2ST and Ship Shoal 314 A-2ST and anticipate more throughout the year. Additionally, we have completed a well stimulation program on three wells at our Mahogany project. "
"We have also finalized our development plans for our Green Canyon 646 #1 discovery well on the Daniel Boone prospect. We believe the timing is excellent to commence the development of Daniel Boone and expect first production in second half 2009. It has taken a considerable amount of time to finalize the details of the project and locate the optimal facility to deliver the production. Development costs for Daniel Boone are included in our previously announced 2008 capital budget."
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 deepwater, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 200 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 Annual Report on 10-K for the year ended December 31, 2007 (www.sec.gov).
Contacts: Manuel Mondragon, Vice President of Finance 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. 06/16/2008 CONTACT: Manuel Mondragon, Vice President of Finance of W&T Offshore +1-713-297-8024, email@example.com; Ken Dennard firstname.lastname@example.org, or Lisa Elliott, email@example.com, both of DRG&E +1-713-529-6600Web site: http://www.wtoffshore.com (WTI)