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

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

    -- Third quarter 2006 production is 50% higher than third quarter 2005 and
       increased 32% sequentially from the second quarter 2006
    -- Year-to-date production was at an all-time high and is projected to
       increase over 50% for 2007
    -- W&T was also successful in seven of seven exploration wells, including
       two on the conventional shelf, four in the deep shelf and one in the
       deepwater during the third quarter of 2006

Net Income: Net income for the three months ended September 30, 2006 was $66.7 million, or $0.91 per diluted share, on revenue of $213.4 million. Net income for the third quarter of 2006 includes an unrealized gain of $14.8 million (after taxes) related to W&T's open commodity derivative contracts. Without the effect of the unrealized commodity derivative gain, net income for the third quarter of 2006 would have been $51.9 million or $0.71 per diluted share. See "Additional Non-GAAP Information" later in this release. This compares to net income of $53.1 million, or $0.80 per diluted share, on revenues of $153.4 million for the third quarter of 2005. Net income for the nine months ended September 30, 2006 was $161.0 million, or $2.35 per diluted share, or $2.21 per diluted share without the effect of the unrealized commodity derivative gain, on revenues of $536.1 million, compared to net income of $138.2 million or $2.09 per diluted share, on revenues of $432.3 million for 2005. Weighted average shares of common stock outstanding on a diluted basis increased 11% to 73.0 million shares for the third quarter of 2006, compared to third quarter of 2005.

Cash Flow from Operations and EBITDA: EBITDA and Adjusted EBITDA are non- GAAP financial measures and are defined in "Additional Non-GAAP Information" later in this press release. Third quarter 2006 Adjusted EBITDA was $168.5 million, compared to $126.1 million during the prior year's third quarter. Net cash provided by operating activities for the nine months ended September 30, 2006 increased to $351.5 million from $343.9 million in 2005. Adjusted EBITDA was $434.1 million for the nine months ended September 30, 2006, compared to $350.7 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 third quarter of 2006 was 15.4 billion cubic feet ("Bcf") of natural gas at an average price of $6.58 per thousand cubic feet ("Mcf") and 1.8 million barrels ("MMBbls") of oil at an average price of $62.08 per Bbl, or 26.2 billion cubic feet of natural gas equivalent ("Bcfe") at an average price of $8.14 per Mcfe. This compares to production of 11.5 Bcf of natural gas at an average price of $8.64 per Mcf and 1.0 MMBbls of oil at an average price of $54.39 per Bbl, or 17.5 Bcfe at an average price of $8.79 per Mcfe in the third quarter of 2005. The increase in volumes is primarily attributable to the additional production associated with the Kerr-McGee transaction closing within the quarter and new production from successful exploration drilling.

For the nine months ended September 30, 2006 total production was 37.5 Bcf of natural gas at an average price of $7.35 per Mcf and 4.3 MMBbls of oil at an average price of $60.48 per Bbl, or 63.3 Bcfe at an average price of $8.46 per Mcfe. This compares to 37.1 Bcf of natural gas at an average price of $7.31 per Mcf and 3.4 MMBbls of oil at an average price of $47.38 per Bbl, or 57.4 Bcfe at an average price of $7.52 per Mcfe for the same period in 2005.

Average realized prices exclude the settlement of commodity derivative contracts that do not qualify for hedge accounting. Had the Company included the effect of the realized cash portion of commodity derivative contracts during the relative periods, the average realized sales price for natural gas would have been $6.87 per Mcf for the third quarter of 2006 and $7.54 per Mcf for the nine months ended September 30, 2006. The average realized sales price for oil would have been $62.00 per barrel for the third quarter of 2006 and $60.33 per barrel for the nine months ended September 30, 2006. On a natural gas equivalent basis, the average realized sales price would have been $8.30 per Mcfe for the third quarter of 2006 and $8.57 per Mcfe for the nine months ended September 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 third quarter increased from $18.2 million, or $1.04 per Mcfe, to $34.4 million, or $1.31 per Mcfe in the third quarter of 2006. LOE for the nine months ended September 30, 2006 was $66.5 million, or $1.05 per Mcfe, compared to $52.3 million, or $0.91 per Mcfe, in 2005. The increases in quarterly and year-to-date LOE are primarily attributable to higher costs associated with the Kerr-McGee transaction in August 2006 and increases in insurance premiums as a result of last year's hurricanes, hurricane repair costs, overall service costs, and supply costs at existing properties.

Depreciation, depletion, amortization and accretion ("DD&A"): DD&A increased to $85.5 million, or $3.26 per Mcfe, in the third quarter of 2006 from $45.6 million, or $2.61 per Mcfe, in the same period of 2005. DD&A for the nine months ended 2006 was $201.9 million or $3.19 per Mcfe, compared to DD&A of $138.8 million, or $2.42 per Mcfe, for the same period in 2005 as a result of an increase in total depletable costs due to the Kerr-McGee transaction and the Company's higher drilling activities.

Kerr-McGee purchase price allocation: The Kerr-McGee properties were accounted for as a purchase, and accordingly, the results of operations are included in our consolidated statements of operations from the closing date of August 24, 2006. The purchase price was allocated to the acquired assets and assumed liabilities based on their estimated fair value at the time of acquisition. As a result of our allocation, $814 million was allocated to proved oil and gas properties and $392 million was allocated to unproved oil and gas properties.

Capital Expenditures and Operations Update: During the third quarter of 2006, the Company participated in the drilling of seven exploration wells (gross) in the Gulf of Mexico, all of which were successful. W&T also successfully drilled one development well during the period. During the third quarter of 2006, the Company spent $70.3 million for development, $35.4 million for exploration, $1.1 billion for acquisition and other leasehold activity and $3.6 million for other capital items. For the nine months ended September 30, 2006, $198.0 million was spent on development, $167.7 million for exploration, and $1.1 billion for acquisition and other leasehold activity.

As a result of the Company's success, the Company's 2006 capital budget was increased to $550 million from $400 million by the Board of Directors during the third quarter.

Drilling Highlights: In the third quarter of 2006, the Company participated in the drilling of eight wells, seven exploration and one development. Of the wells drilled in the third quarter of 2006, one was in deepwater, four were on the deep shelf, and three were on the conventional shelf. One second-quarter exploration deep shelf well has been re-categorized as non-commercial. Two of the exploration wells, indicated below by an asterisk, were drilled before W&T closed the Kerr-McGee transaction.


    Successful Wells:

    Field Name/Well                    Category           Working Interest %
    High Island 24L #1            Exploration / Shelf             25%
    South Timbalier 206 A-10ST    Exploration / Shelf             25%
    Bay Junop S/L 17993-#1        Exploration / Deep Shelf       100%
    Eugene Island 205 C-3ST       Exploration / Deep Shelf       100%
    South Timbalier 41 #5 (F-1)*  Exploration / Deep Shelf        40%
    West Cameron 295 #4ST*        Exploration / Deep Shelf        20%
    Green Canyon 82 #3            Exploration / Deepwater        100%
    East Cameron 321 A-25ST       Development / Shelf            100%

    * Indicates wells drilled before W&T closed the Kerr-McGee transaction

    Non-commercial Well (re-classified from the second quarter):

    Field Name/Well                    Category           Working Interest %
    Eugene Island 205 C-1ST       Exploration / Deep Shelf       100%

In the remainder of the year, the Company anticipates drilling two exploration wells on the conventional shelf, and two exploration wells in the deepwater.

Dividends: On October 11, 2006, the board of directors declared a cash dividend of $0.03 per common share, which was paid on November 1, 2006 to shareholders of record on October 22, 2006. On August 1, 2006, the Company paid a cash dividend of $0.03 per common share to shareholders of record on July 14, 2006.

Insurance Update: As of September 30, 2006, the Company has incurred $76.8 million of costs, net to its interest, to remediate damage caused by Hurricanes Katrina and Rita that have been reclassified to insurance receivables and other assets. Included in insurance receivables and other assets is $45.7 million and $6.1 million, respectively, which represents the estimated reimbursable hurricane remediation costs incurred in excess of the deductibles that the Company believes are reimbursable under its insurance policies. To date, the Company has received payment for its claims related to Hurricane Rita in the amount of $17.2 million, net of deductibles. The Company estimates the total remediation costs associated with the hurricanes to be between $90 million and $100 million.

Kerr-McGee Transaction Closing: W&T Offshore completed the merger transaction with a Kerr-McGee subsidiary owning the Gulf of Mexico conventional shelf properties of Kerr-McGee. The effective date of the transaction is October 1, 2005. The merger transaction closed on August 24, 2006 for $1.03 billion.

Equity Offering: W&T Offshore completed an equity offering on July 20, 2006, selling a total of 8.5 million shares at $32.50 per share, before underwriting discount. The Company granted the underwriters a 30-day option to purchase up to an additional 1.275 million shares of common stock, which was exercised on August 9, 2006. Total proceeds to the Company, net of underwriting discount, was $308.2 million, which was used as a portion of the cash consideration in the Kerr-McGee merger transaction.

Outlook: Certain factors affecting these forward-looking statements are listed in this news release. Guidance on performance for the fourth quarter, full year 2006 and full year 2007 is shown in the table below. The fourth quarter and full year 2006 guidance includes the impact of the Kerr-McGee transaction, as reported in our operations update on August 28, 2006.


    Estimated Production       Fourth Quarter     Full-Year       Full-Year
                                    2006             2006           2007

    Crude oil (MMBbls)           2.1 - 2.3        6.4 - 6.6      9.6 - 10.5
    Natural gas (Bcf)           22.7 - 24.6      60.2 - 62.1    92.2 - 101.2
    Total (Bcfe)                35.0 - 38.1      98.4 - 101.4  149.7 - 164.3

    Operating Expenses ($ in   Fourth Quarter     Full-Year       Full-Year
    millions, except as noted)      2006             2006           2007

    Lease operating expenses    $35.5 - $42.6   $99.7 - $106.8      N/A
    Gathering, transportation
     & production taxes          $8.1 - $9.6    $19.8 - $21.3       N/A
    General and administrative  $10.2 - $14.2   $40.6 - $44.6       N/A
    Income tax rate, % deferred   35.0%, 80%      35.0%, 80%        N/A

Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Thursday, November 9, 2006 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate, dial (303) 262-2075 a few minutes before the call begins. The call will also be broadcast live over the Internet from the Company's website at www.wtoffshore.com. A replay of the conference call will be available approximately two hours after the end of the call until Thursday, November 16, 2006, and may be accessed by calling (303) 590-3000 and using the pass code 11074827.

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 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 other factors discussed in our Annual Report on 10-K for the year ended December 31, 2005 (www.sec.gov).



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

                                    Three Months Ended     Nine Months Ended
                                      September 30,          September 30,
                                      2006       2005       2006       2005
    Revenues:
      Oil and natural gas          $213,393    $153,355   $535,960  $431,744
      Other                              38          70        122       532
        Total revenues              213,431     153,425    536,082   432,276
    Expenses:
      Lease operating                34,427      18,226     66,491    52,253
      Gathering, transportation
       costs and production taxes     5,186       2,551     11,694    10,186
      Depreciation, depletion, and
       amortization                  82,142      43,403    194,052   131,967
      Asset retirement obligation
       accretion                      3,324       2,203      7,840     6,829
      General and administrative      9,645       6,524     30,377    19,187
      Commodity derivative gain     (27,065)          -    (21,793)        -
        Total operating expenses    107,659      72,907    288,661   220,422

      Income from operations        105,772      80,518    247,421   211,854

      Net interest income
       (expense)                     (3,627)        581       (871)      468

      Income before income taxes    102,145      81,099    246,550   212,322

    Income tax expense               35,444      27,997     85,553    74,156
      Net income                    $66,701     $53,102   $160,997  $138,166

    Earnings per common share:
      Basic                           $0.92       $0.80      $2.36     $2.14
      Diluted                         $0.91       $0.80      $2.35     $2.09

    Weighted average shares outstanding:
      Basic                          72,882      65,970     68,300    64,649
      Diluted                        73,039      65,970     68,412    65,968

    Consolidated Cash Flow Information
    Net cash provided by operating
     activities                    $123,364    $145,342   $351,468  $343,894
    Capital expenditures         $1,181,423     $82,488 $1,455,800  $227,822

    Other Financial Information
    Adjusted EBITDA                $168,524    $126,124   $434,089  $350,650


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

                                             Three Months    Nine Months
                                                Ended           Ended
                                             September 30,     June 30,
                                             2006    2005    2006    2005
    Net sales:
        Natural gas (MMcf)                  15,374  11,498  37,490  37,150
        Oil (MBbls)                          1,809     993   4,307   3,379
        Total natural gas and oil (MMcfe)   26,228  17,456  63,333  57,421

    Average daily equivalent sales
     (MMcfe/d)                                 285     190     232     210

    Average realized sales prices:
        Natural gas ($/Mcf)                  $6.58   $8.64   $7.35   $7.31
        Oil ($/Bbl)                          62.08   54.39   60.48   47.38
        Natural gas equivalent ($/Mcfe)       8.14    8.79    8.46    7.52

    Average per Mcfe data ($/Mcfe):
        Lease operating expenses             $1.31   $1.04   $1.05   $0.91
        Gathering, transportation cost and
         production taxes                     0.20    0.15    0.18    0.18
        Depreciation, depletion,
         amortization and accretion           3.26    2.61    3.19    2.42
        General and administrative            0.37    0.37    0.48    0.33
        Net cash provided by operating
         activities                           4.70    8.33    5.55    5.99
        Adjusted EBITDA                       6.43    7.23    6.85    6.11


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

                                           September 30,      December 31,
                                                2006              2005
                   Assets
    Current assets:
       Cash                                    $12,071          $187,698
       Receivables                             159,551            83,623
       Prepaid expenses and other               56,298            12,503
          Total current assets                 227,920           283,824

    Property and equipment - at cost         3,082,452         1,486,865
    Less accumulated depreciation,
     depletion and amortization                911,635           717,583
          Net property and equipment         2,170,817           769,282

    Other assets                                23,088            11,414
             Total assets                   $2,421,825        $1,064,520

      Liabilities and Shareholders' Equity
    Current liabilities:
       Current portion of LT Debt             $354,640                $-
       Accounts payable                        169,936           143,049
       Asset retirement obligations             43,760            39,653
       Accrued liabilities and other            80,211            48,990
          Total current liabilities            648,547           231,692

    Long-term debt, less current portion       316,233            40,000
    Asset retirement obligations, less
     current portion                           243,858           112,621
    Deferred income taxes                      199,964           134,395
    Other liabilities                            4,398             2,429
    Shareholders' equity:
       Common stock                                  1                 1
       Additional paid-in capital              361,489            52,332
       Retained earnings                       648,080           491,050
       Accumulated other comprehensive
        income (loss)                             (745)                -
          Total shareholders' equity         1,008,825           543,383
             Total liabilities and
              shareholders' equity          $2,421,825        $1,064,520


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

                                                  Nine Months Ended
                                                    September 30,
                                                2006              2005
    Operating activities:
       Net income                             $160,997         $138,166
       Adjustments to reconcile net
        income to net cash provided
        by operating activities:
             Depreciation, depletion,
              amortization and accretion       201,892          138,796
             Amortization of debt
              issuance costs                     1,097              262
             Accretion of discount on
              long-term debt                     2,141                -
             Share-based compensation            2,177              390
             Unrealized commodity
              derivative gain                  (15,224)               -
             Deferred income taxes              65,977           32,517
             Changes in operating assets
              and liabilities                  (67,589)          33,763
                Net cash provided by
                 operating activities          351,468          343,894

    Investing activities:
       Investment in oil and gas property
        and equipment, net                  (1,449,095)        (227,464)
       Investment in marketable securities           -           (1,822)
       Purchases of furniture, fixtures
        and other                               (6,705)            (358)
       Change in restricted deposits              (280)            (187)
                Net cash used in
                 investing activities       (1,456,080)        (229,831)

    Financing activities:
       Borrowings of long-term debt            819,732            2,550
       Repayments of borrowings of long-
        term debt                             (191,000)         (37,550)
       Proceeds from equity offering, net
        of costs                               306,980                -
       Dividends to shareholders                (5,947)          (2,639)
       Debt issuance costs                        (780)            (889)
                Net cash provided by
                 (used in) financing
                 activities                    928,985          (38,528)
                (Decrease) increase in
                 cash and cash equivalents    (175,627)          75,535
    Cash and cash equivalents, beginning
     of period                                 187,698           64,975
    Cash and cash equivalents, end of period   $12,071         $140,510


                              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 gain 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        Nine Months Ended
                                September 30,             September 30,
                             2006          2005       2006          2005
                               (In thousands, except per share amounts)
                                            (Unaudited)
    Net income             $66,701      $53,102     $160,997     $138,166
    Less: Unrealized
     commodity derivative
     gain                  (22,714)           -      (15,224)           -
    Plus: Income tax
     adjustment for above
     item                    7,882            -        5,283            -
    Earnings stated without
     effect of the above
     items                 $51,869      $53,102     $151,056     $138,166

    Earnings per share-
     diluted without the
     effect of the above
     items                   $0.71        $0.80        $2.21        $2.09

                    Reconciliation of Net Income to 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 non- cash 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        Nine Months Ended
                                September 30,             September 30,
                             2006          2005       2006          2005
                                          (In thousands)
                                            (Unaudited)
    Net income             $66,701      $53,102     $160,997     $138,166
    Income tax expense      35,444       27,997       85,553       74,156
    Net interest (income)
     expense                 3,627         (581)         871         (468)
    Depreciation, depletion,
     amortization and
     accretion              85,466       45,606      201,892      138,796
    EBITDA                 191,238      126,124      449,313      350,650
    Adjustments:
    Non-cash change in
     unrealized commodity
     derivatives
     (before tax)          (22,714)           -      (15,224)           -

    Adjusted EBITDA       $168,524     $126,124     $434,089     $350,650

Contacts:
Manuel Mondragon, 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

SOURCE W&T Offshore, Inc.