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W&T Offshore Reports Second Quarter 2006 Financial and Operational Results
                   Provides Guidance for the Third Quarter

HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) announced today financial and operational results for the second quarter 2006.

    -- Earnings were $0.58 per diluted share, or $0.71 without the effect of
       the derivative loss, in the second quarter 2006 vs. $0.69 in second
       quarter 2005
    -- W&T was 100% successful in drilling three of three development wells on
       the conventional shelf
    -- W&T was also successful in six of nine exploration wells, including
       four on the conventional shelf and two in the deep shelf

Net Income: Net income for the three months ended June 30, 2006 was $38.5 million, or $0.58 per diluted share, on revenue of $165.8 million. Net income reflects the impact of $12.8 million of unrealized loss ($8.4 million after- tax), or $0.13 per diluted share, associated with the change in fair market value of W&T's open derivative contracts. Without the effect of the unrealized derivative loss, net income for the quarter would have been $46.8 million or $0.71 per diluted share. See "Additional Non-GAAP Information" later in this release. This compares to net income of $45.8 million, or $0.69 per diluted share, on revenues of $149.8 million for the second quarter of 2005. Net income for the six months ended June 30, 2006 was $94.3 million, or $1.43 per diluted share (or $1.50 per diluted share without the effect of the unrealized derivative loss), on revenues of $322.7 million, compared to net income of $85.1 million or $1.29 per diluted share, on revenues of $278.9 million for 2005.

Cash Flow from Operations and EBITDA: EBITDA and Adjusted EBITDA are non- GAAP measures and are defined in "Additional Non-GAAP Information" later in this press release. Net cash provided by operating activities decreased 9% to $114.8 million during the second quarter 2006 from $126.1 million during the prior year's second quarter. The decrease in cash provided by operating activities was primarily attributable to negative working capital changes. Second quarter 2006 Adjusted EBITDA was $137.4 million, compared to $123.0 million during the prior year's second quarter. Net cash provided by operating activities for the six months ended June 30, 2006 increased 15% to $228.1 million from $198.6 million in the first half of 2005. Adjusted EBITDA was $265.6 million for the six months ended June 30, 2006, compared to $224.5 million for the prior year period. For more complete information regarding EBITDA and Adjusted EBITDA please see "Additional Non-GAAP Information" later in this press release.

Production and Prices: Total production in the second quarter of 2006 was 11.2 billion cubic feet ("Bcf") of natural gas at an average price of $6.98 per thousand cubic feet ("Mcf") and 1.4 million barrels ("MMBbls") of oil at an average price of $61.13 per Bbl, or 19.8 billion cubic feet of natural gas equivalent ("Bcfe") at an average price of $8.37 per Mcfe. This compares to production of 13.3 Bcf of natural gas at an average price of $7.08 per Mcf and 1.2 MMBbls of oil at an average price of $45.22 per Bbl, or 20.7 Bcfe at an average price of $7.24 per Mcfe in the second quarter of 2005. The natural gas volume decrease is primarily attributable to the deferral of production caused by Hurricanes Katrina and Rita and natural reservoir declines. The oil volume increase is primarily the result of successful drilling efforts. At the end of the second quarter we were producing at 90% of pre-Katrina levels.

For the six months ended June 30, 2006, total production was 22.1 Bcf of natural gas at an average price of $7.88 per Mcf and 2.5 MMBbls of oil at an average price of $59.32 per Bbl, or 37.1 Bcfe at an average price of $8.69 per Mcfe. This compares to 25.6 Bcf of natural gas at an average price of $6.72 per Mcf and 2.4 MMBbls of oil at an average price of $44.47 per Bbl, or 40.0 Bcfe at an average price of $6.97 per Mcfe for the same period in 2005.

Average prices exclude the settlement of derivative contracts that do not qualify for hedge accounting. Had the settlement of these derivatives been included, average sales price for natural gas would have been $7.22 per Mcf for the second quarter of 2006 and $8.01 per Mcf for the six months ended June 30, 2006. Average sales price for oil would have been $60.78 per barrel for the second quarter of 2006 and $59.13 per barrel for the six months ended June 30, 2006. On a natural gas equivalent basis, average sales price would have been $8.48 per Mcfe for the second quarter of 2006 and $8.75 per Mcfe for the six months ended June 30, 2006. The Company did not have any derivative contracts in place during the periods ended in 2005.

Lease Operating Expenses ("LOE"): LOE for the second quarter of 2006 decreased to $16.3 million, or $0.82 per Mcfe, from $17.9 million, or $0.86 per Mcfe, in the second quarter of 2005. The decline in LOE was due to fewer workovers and lower maintenance expenses, which were partially offset by an increase in operating costs. LOE for the six months ended June 30, 2006 was $32.1 million or $0.86 per Mcfe, compared to $34.0 million or $0.85 per Mcfe in 2005. LOE for the periods ended in 2006 excludes hurricane remediation costs reclassified to accounts receivable that we believe are reimbursable under our insurance policies.

Depreciation, depletion, amortization and accretion ("DD&A"): DD&A increased to $67.3 million, or $3.40 per Mcfe, in the second quarter of 2006 from $51.9 million, or $2.51 per Mcfe, in the same period of 2005. DD&A for the six months ended 2006 was $116.4 million or $3.14 per Mcfe, compared to DD&A of $93.2 million, or $2.33 per Mcfe, for the same period in 2005 as a result of an increase in our total depletable costs from a larger capital spending program.

Capital Expenditures and Operations Update: During the second quarter of 2006, we participated in the drilling of nine exploration wells (gross) in the Gulf of Mexico of which six were successful. We also successfully drilled three development wells during the period. During the second quarter of 2006, we spent $65.1 million for development, $80.4 million for exploration and $6.0 million for other capital items, including acquisitions. For the six months ended June 30, 2006, $127.7 million was spent on development, $132.3 million for exploration and $14.4 million on other capital items, including leasehold acquisitions.

As a result of exploration success the Company has experienced over the last twelve months, capital spending on completion projects has exceeded earlier expectations. Additionally, the full extent of the Company's exploration program at Green Canyon 82 "Healey" was not included in the original budget. The Company expects the stand-alone budget to be increased by approximately $150 million above the original budget of $400 million.

Drilling Highlights: In the second quarter of 2006, the Company participated in the drilling of twelve wells, nine exploration, and three development. Of the wells drilled in the second quarter of 2006, one was in deepwater, two were on the deep shelf, and nine were on the conventional shelf. Two shelf wells and one deepwater well were considered non-commercial. After the close of the second quarter, three additional exploration discoveries were made, along with one development well, which are indicated by an asterisk (*).

    Successful Wells:

    Field Name/Well                  Category            Working Interest %

    Eugene Island 205 C-2ST      Exploration / Shelf           100%
    West Delta 30 D-3ST          Exploration / Shelf           100%
    Mobile Bay 823 BB-2          Exploration / Shelf           100%
    South Timbalier 206 A-10ST*  Exploration / Shelf            25%
    West Delta 30 D-6ST          Exploration / Shelf           100%
    Eugene Island 205 C-4ST      Exploration / Deep Shelf      100%
    Eugene Island 205 C-1ST      Exploration / Deep Shelf      100%
    Eugene Island 205 C-3ST*     Exploration / Deep Shelf      100%
    Green Canyon 82 #3*          Exploration / Deepwater       100%
    East Cameron 321 A-22ST      Development / Shelf           100%
    East Cameron 321 A-12ST      Development / Shelf           100%
    East Cameron 321 A-25ST*     Development / Shelf           100%
    West Delta 30 D-2ST          Development / Shelf           100%

    Non-commercial Wells:

    Field Name/Well                 Category            Working Interest %

    Eugene Island 205 D-4ST      Exploration / Shelf           100%
    Venice BLD #1                Exploration / Shelf           100%
    Garden Banks 240 #1          Exploration / Deepwater        33%

In the remainder of the year, the Company anticipates drilling three exploration wells on the conventional shelf, one in the deep shelf and up to two in the deepwater. Additionally, we have two development wells scheduled for the second half of 2006.

Dividends: On June 28, 2006, the board of directors declared a cash dividend of $0.03 per common share, which was paid on August 1, 2006 to shareholders of record on July 14, 2006. On May 1, 2006, the Company paid a cash dividend of $0.03 per common share to shareholders of record on April 14, 2006.

Insurance Update: Our estimate of repair costs associated with hurricanes Katrina and Rita has increased to between $90 and $100 million. As of June 30, 2006, the Company has incurred $7.8 million of development costs and $41.1 million of production costs, net to its interest, to remediate damage caused by Hurricanes Katrina and Rita and the Company believes these costs are reimbursable under its insurance policies. W&T reclassified these costs to accounts receivable and continues to file claims with its underwriters for reimbursement. Included in joint interest and other receivables at June 30, 2006 is $43.4 million, which represents the estimated reimbursable hurricane remediation costs incurred in excess of the deductibles. In July 2006, the Company received an initial payment for our first claim related to Hurricane Rita in the amount of $4.9 million. This payment was for reimbursable costs of $10.1 million, less the cumulative annual deductible for 2005 of $5.0 million and a per occurrence deductible of $250,000.

Kerr-McGee Transaction Update: The daily production from Kerr-McGee properties is 186 Mmcfe as of July 16, 2006. The Kerr-McGee Transaction is on track to be completed and closed during the third quarter of 2006.


    Outlook:  Certain factors affecting these forward-looking statements are
listed in this news release.  Guidance on performance for the third quarter,
full year of 2006 is shown in the table below.  The guidance is for W&T stand-
alone only and does not include the impact of the pending Kerr-McGee
Transaction.


    Estimated Production         Third Quarter 2006       Full-Year 2006
    Crude oil (MMBbls)                1.5 - 1.6              5.8 - 6.1
    Natural gas (Bcf)                11.9 - 12.2            48.2 - 51.1
    Total (Bcfe)                     21.1 - 21.6            83.0 - 87.7

    Operating Expenses ($ in     Third Quarter 2006       Full- Year 2006
    millions, except as noted)
    Lease operating expenses       $22.5 - $24.0          $75.3 - $82.3
    Gathering, transportation
     & production taxes              $3.7 - $4.4          $15.1 - $16.5
    General and administrative      $8.6 - $10.6          $38.0 - $43.0
    Income tax rate, % deferred       35.0%, 80%          35.0%, 80%

Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Wednesday, August 9, 2006 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate, dial (303) 262-2175 a few minutes before the call begins. The call will also be broadcast live over the Internet from the Company's website at http://www.wtoffshore.com. A replay of the conference call will be available approximately two hours after the end of the call until Wednesday, August 16, 2006, and may be accessed by calling (303) 590-3000 and using the pass code 11067661.

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 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 .

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, uncertainties and difficulties associated with closing our pending Kerr-McGee Transaction and the integration and operation of its properties thereafter and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2005 (http://www.sec.gov).

     Contacts:

     Manuel Mondragon, Assistant Vice President 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


                                W&T OFFSHORE, INC.
                        Consolidated Statements of Income
                     (In thousands, except per share amounts)
                                   (Unaudited)

                                      Three Months Ended    Six Months Ended
                                           June 30,            June 30,
                                        2006      2005      2006      2005
    Revenues:
        Oil and natural gas           $165,714  $149,665  $322,566  $278,389
        Other                               82       114        84       462
            Total revenues             165,796   149,779   322,650   278,851
    Expenses:
        Lease operating                 16,284    17,874    32,064    34,027
        Gathering, transportation
         costs and production taxes      5,252     3,139     6,508     7,635
        Depreciation, depletion, and
         amortization                   65,072    49,607   111,910    88,564
        Asset retirement obligation
         accretion                       2,262     2,314     4,516     4,626
        General and administrative       9,072     5,754    20,732    12,663
        Commodity derivative loss       10,548       -       5,272       -
            Total operating expenses   108,490    78,688   181,002   147,515

        Income from operations          57,306    71,091   141,648   131,336

        Net interest income (expense)    1,434       108     2,756      (113)

        Income before income taxes      58,740    71,199   144,404   131,223

    Income tax expense                  20,275    25,417    50,108    46,159
        Net income                     $38,465   $45,782   $94,296   $85,064

    Earnings per common share:
        Basic                            $0.58     $0.69     $1.43     $1.33
        Diluted                          $0.58     $0.69     $1.43     $1.29

    Weighted average shares outstanding:
        Basic                           65,971    65,970    65,971    63,977
        Diluted                         66,138    65,970    66,060    65,967

    Consolidated Cash Flow Information
    Net cash provided by operating
     activities                       $114,798  $126,123  $228,104  $198,551
    Capital expenditures              $151,483   $91,071  $274,376  $147,110

    Other Financial Information
    Adjusted EBITDA                   $137,406  $123,012  $265,564  $224,526


                              W&T OFFSHORE, INC.
                                Operating Data
                                  (Unaudited)

                                         Three Months Ended  Six Months Ended
                                              June 30,          June 30,
                                          2006       2005    2006     2005
    Net sales:
        Natural gas (MMcf)               11,212     13,276  22,116   25,652
        Oil (MBbls)                       1,431      1,232   2,498    2,386
        Total natural gas and oil
        (MMcfe)                          19,798     20,667  37,105   39,966

    Average daily equivalent sales
     (MMcfe/d)                              218        227     205      221

    Average realized sales prices:
        Natural gas ($/Mcf)               $6.98      $7.08   $7.88    $6.72
        Oil ($/Bbl)                       61.13      45.22   59.32    44.47
        Natural gas equivalent ($Mcfe)     8.37       7.24    8.69     6.97

    Average per Mcfe data ($/Mcfe):
        Lease operating expenses          $0.82      $0.86   $0.86    $0.85
        Gathering, transportation cost
         and production taxes              0.27       0.15    0.18     0.19
        Depreciation, depletion,
         amortization and accretion        3.40       2.51    3.14     2.33
        General and administrative         0.46       0.28    0.56     0.32
        Net cash provided by operating
         activities                        5.80       6.10    6.15     4.97
        Adjusted EBITDA                    6.94       5.95    7.16     5.62


                               W&T OFFSHORE, INC.
                           Consolidated Balance Sheets
                                 (In thousands)
                                   (Unaudited)

                                              June 30,        December 31,
                                                2006              2005
                   Assets
    Current assets:
       Cash                                    $97,309          $187,698
       Accounts receivable                     120,604            83,623
       Prepaid expenses and other               40,659            12,503
          Total current assets                 258,572           283,824

    Property and equipment - at cost         1,762,866         1,486,865
    Less accumulated depreciation,
     depletion and amortization                829,494           717,583
          Net property and equipment           933,372           769,282

    Other assets                                14,876            11,414
             Total assets                   $1,206,820        $1,064,520

    Liabilities and Shareholders' Equity
    Current liabilities:
       Accounts payable                       $177,959          $143,049
       Asset retirement obligations             32,967            39,653
       Accrued liabilities and other            48,888            48,990
          Total current liabilities            259,814           231,692

    Long-term debt                                   -            40,000
    Asset retirement obligations, less
     current portion                           115,893           112,621
    Deferred income taxes                      185,482           134,395
    Other liabilities                           10,189             2,429
    Shareholders' equity:
       Common stock                                  1                 1
       Additional paid-in capital               54,062            52,332
       Retained earnings                       581,379           491,050
          Total shareholders' equity           635,442           543,383
             Total liabilities and
              shareholders' equity          $1,206,820        $1,064,520


                               W&T OFFSHORE, INC.
                      Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (Unaudited)

                                                   Six Months Ended
                                                       June 30,
                                                2006              2005
    Operating activities:
       Net income                              $94,296           $85,064
       Adjustments to reconcile net
        income to net cash provided
        by operating activities:
          Depreciation, depletion,
           amortization and accretion          116,426            93,190
          Amortization of debt
           issuance costs                          159               183
          Share-based compensation               1,731               385
           Commodity derivative loss             7,490                 -
          Deferred income taxes                 51,087            18,714
          Changes in operating assets
           and liabilities                     (43,085)            1,015
          Net cash provided by
           operating activities                228,104           198,551

    Investing activities:
       Investment in oil and gas property
        and equipment                         (271,313)         (146,985)
       Purchases of furniture, fixtures
        and other                               (3,063)             (115)
       Change in restricted deposits              (153)             (108)
                Net cash used in
                 investing activities         (274,529)         (147,208)

    Financing activities:
       Repayments of borrowings of long-
        term debt                              (40,000)          (35,000)
       Dividends to shareholders                (3,964)           (1,319)
       Debt issuance costs                           -              (889)
                Net cash used in
                 financing activities          (43,964)          (37,208)
                (Decrease) increase in
                 cash and cash
                 equivalents                   (90,389)           14,135
    Cash and cash equivalents, beginning
     of period                                 187,698            64,975
    Cash and cash equivalents, end of
     period                                    $97,309           $79,110


                              W&T OFFSHORE, INC.

                       Additional Non-GAAP Information

Certain financial information included in our financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are "Adjusted Net Income", "EBITDA", and "Adjusted EBITDA". Our management uses these non-GAAP measures in its analysis of our performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

             Reconciliation of Net Income to Adjusted Net Income

    "Adjusted Net Income" does not include the unrealized derivative loss and
associated tax effects.  Adjusted Net Income is presented because the timing
and amount of these items cannot be reasonably estimated and affect the
comparability of operating results from period to period, and period to prior
periods.

                              Three Months Ended       Six Months Ended
                                   June 30,                 June 30,
                               2006        2005        2006         2005
                                (In thousands, except per share amounts)
                                              (Unaudited)
    Net income                $38,465    $45,782     $94,296      $85,064
    Plus: Unrealized
     commodity derivative
     loss                      12,766          -       7,490            -
    Plus: Income tax
     adjustment for above
     item                      (4,404)         -      (2,599)           -
    Adjusted Net Income       $46,827    $45,782     $99,187      $85,064

    Adjusted Net Income per
     share-diluted without
     the effect of the above
     items                      $0.71      $0.69       $1.50        $1.29


          Reconciliation of Net Income to EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus income tax expense, net interest (income) expense, depreciation, depletion, amortization and accretion and non- cash expenses associated with unrealized changes in the fair market value of open derivative contracts. Although not prescribed under GAAP, we believe the presentation of EBITDA is relevant and useful because it helps our investors understand our operating performance and makes it easier to compare our results with those of other companies that have different financing, capital or tax structures. EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA measures reported by other companies. In addition, EBITDA does not represent funds available for discretionary use. "Adjusted EBITDA" excludes the unrealized gain or loss related to open derivative contracts. Adjusted EBITDA excludes certain items that management believes affect the comparability of operating results.

The following table presents a reconciliation of our consolidated net income to consolidated EBITDA.

                              Three Months Ended        Six Months Ended
                                   June 30,                 June 30,
                               2006        2005        2006         2005
                                 (In thousands, except per share amounts)
                                              (Unaudited)
    Net income                $38,465    $45,782      $94,296      $85,064
    Income tax expense         20,275     25,417       50,108       46,159
    Net interest (income)
     expense                   (1,434)     (108)       (2,756)         113
    Depreciation, depletion,
     amortization and
     accretion                 67,334    51,921       116,426       93,190
    EBITDA                    124,640   123,012       258,074      224,526

    Adjustments:
    Non-cash change in
     unrealized commodity
     derivatives (before tax)  12,766         -         7,490            -

    Adjusted EBITDA          $137,406  $123,012      $265,564     $224,526

SOURCE W&T Offshore, Inc.

CONTACT:
Manuel Mondragon, Assistant Vice President of Finance of W&T Offshore,
+1-713-297-8024, investorrelations@wtoffshore.com
Ken Dennard
ksdennard@drg-e.com
or Lisa Elliott
lelliott@drg-e.com
both of DRG&E
+1-713-529-6600

Web site: http://www.wtoffshore.com