W&T increasing shallow-water Gulf of Mexico portfolio

Offshore staff

HOUSTON – W&T Offshore Inc. has entered into a definitive purchase and sale agreement to acquire working interests in and operatorship of producing shallow-water assets in the central Gulf of Mexico from privately-held ANKOR E&P Holdings Corp. and KOA Energy LP for $47 million.

The assets are the Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields. The acquisition includes 53 producing wells and 16 structures. The current estimated production is about 3.4 Mboe/d (74% oil).

The effective date of the transaction is July 1, 2021. It is anticipated to close by the end of 1Q 2022. The acquisition will be funded entirely using cash on hand, the company said.

According to W&T, the assets will add internally-estimated proved reserves of 5.5 MMboe (69% oil) and proved and probable, or 2P, reserves of 7.6 MMboe (75% oil) as of July 1, 2021 assuming strip pricing as of Dec. 7, 2021.

Tracy W. Krohn, chairman and CEO, said: “These assets complement our existing high-quality portfolio extremely well, and given we operate other assets near these properties, we believe we’ll be able to leverage our scale and expertise to capture synergies and maximize the value of these assets. The current environment for acquisitions in the Gulf of Mexico continues to be very good…”

The transaction will increase the company’s federal shallow water acreage by about 57,500 gross acres (46,000 net acres).

01/10/2022