HOUSTON, Sept. 1 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) announced today that its operated drilling rigs and production platforms in the Gulf of Mexico appear to have sustained minimal damage from Hurricane Katrina. We sustained some damage to the processing facilities at our South Timbalier 229 platform. Prior to the arrival of the storm, all employees and contract personnel were evacuated from all of the Company's fields and a majority of its production was shut-in.
Because of the hurricane, the Company temporarily shut-in 135 of 138 gross operated wells, which deferred net operated production of approximately 550 million cubic feet of gas equivalent (MMcfe) through August 31, 2005. The Company expects that the majority of its operated production will be back on line within the next 96 hours, although we will not be able to use certain transportation pipelines until inspections have been completed or, in some cases, until certain processing plants onshore have restarted.
Approximately 33% of the Company's total production is derived from non- operated wells and at this time the Company is gathering information to accurately report the status of this non-operated production. While the Company is still gathering information to ascertain the status of these non- operated wells, we have no reason to believe the impact on these properties will be materially different from the wells we operate.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "This has been a horrific experience for all who work and live in the Gulf Coast area. We are relieved and pleased that nearly all of our employees have been located and are safe. We expect, as communications improve, to hear from the remaining employees, as well. Accordingly, our disaster recovery plans have been implemented and we have temporarily relocated our personnel to the Houston office. Our off-site back-up systems are in operation."
Until further notice, all customer and vendor inquiries should be directed to W&T Offshore's headquarters at:
Eight Greenway Plaza Suite 1330 Houston, TX 77046 Phone: 713-626-8525 Fax: 713-626-8527
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 Annual Report on 10-K for the year ended December 31, 2004 (http://www.sec.gov ).
Contacts: Manuel Mondragon, Assistant VP 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.