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W&T Offshore Provides Operational Update on Third Quarter Activity and Updates Guidance for Kerr-McGee Properties

HOUSTON, Aug. 28 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) today provided an update on its recent operations and drilling program and provides updated guidance to include the recent closing of the Kerr-McGee transaction.

Since the beginning of the third quarter, W&T Offshore has successfully drilled six out of six wells, including three in the deep shelf. Since the beginning of 2006, the Company has successfully drilled seventeen out of twenty exploration wells and eight out of eight development wells. Two of the development wells, indicated below by an asterisk, were drilled by Kerr-McGee prior to the closing of the transaction.

    Third Quarter to Date Successful Wells:

    Field Name/Well               Category                  Working Interest %
    South Timbalier 206 A-10ST    Exploration / Shelf             25%
    Eugene Island 205 C-3ST       Exploration / Deep Shelf       100%
    Green Canyon 82 #3            Exploration / Deepwater        100%
    East Cameron 321 A-25ST       Development / Shelf            100%
    South Timbalier 41#5*         Exploration / Deep Shelf        40%
    West Cameron 295 #4*          Exploration / Deep Shelf        20%

    Updated Third Quarter and Full-Year 2006 Guidance

W&T is revising its third quarter and full year 2006 estimated guidance to reflect the Kerr-McGee transaction. Currently, we anticipate an 18 percent increase in third quarter production and a 16 percent increase for the full year 2006 over our stand-alone guidance. Approximately 2.8 Bcfe has been deferred resulting from third party pipeline repair delays, primarily at East Cameron 321 and Mississippi Canyon 718. The guidance assumes incremental production and expenses as of September 1, 2006.

    Estimated
     Production       Revised Third   Prior Third     Revised       Prior
                       Quarter 2006   Quarter 2006   Full-Year    Full-Year
                                                       2006          2006
    Crude oil
     (MMBbls)          1.66 - 1.71     1.5 - 1.6    6.4 - 6.6     5.8 - 6.1
    Natural gas (Bcf)  14.7 - 15.2    11.9 - 12.2  60.2 - 62.1   48.2 - 51.1
    Total (Bcfe)       24.7 - 25.5    21.1 - 21.6  98.4 - 101.4  83.0 - 87.7
    Estimated Daily
     Production
     (MMcfe/d)          268 - 277      232 - 237    272 - 278     227 - 240

    Operating
     expenses
     ($ in millions,
     except as
     noted)        Revised Third   Prior Third      Revised         Prior
                    Quarter 2006   Quarter 2006    Full-Year      Full-Year
                                                      2006           2006
    Lease operating
     expenses      $28.5 - $30.1  $22.5 - $24.0  $99.7 - $106.8  $75.3 - $82.3
    Gathering,
     transportation &
     production
     taxes          $4.8 - $5.6    $3.7 - $4.4   $19.8 - $21.3   $15.1 - $16.5
    General and
     administrative $9.4 - $11.4   $8.6 - $10.6  $40.6 - $44.6   $38.0 - 43.0
    Income tax rate,
     % deferred       35%, 80%      35.0%, 80%     35.0%, 80%     35.0%, 80%


    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

Forward-Looking Statements

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, 2005 (www.sec.gov).

Contacts:
Manuel Mondragon, Assistant VP of Finance
investorrelations@wtoffshore.com
713-297-8024

Ken Dennard / ksdennard@drg-e.com
Lisa Elliott / lelliott@drg-e.com
DRG&E / 713-529-6600

SOURCE W&T Offshore, Inc.