HOUSTON — W&T Offshore Inc. has completed the accretive acquisition of six fields in shallow waters of the Gulf of Mexico (GoM).
The six fields acquired include Eugene Island 064, Main Pass 061, Mobile 904, Mobile 916, South Pass 049 and West Delta 073. They are located in water depths ranging between about 15 ft and 400 ft.
W&T was the successful bidder for these assets in the GoM offered by MLCJR LLC, Cox Oil Offshore LLC, Cox Operating LLC, Energy XXI GOM LLC, Energy XXI Gulf Coast LLC, EPL Oil & Gas LLC and M21K LLC (collectively, the debtors).
The six fields acquired produced about 8,300 boe/d (48% liquids) on average in April 2023, the month prior to the bankruptcy filing by the debtors in May 2023.
The final purchase price for the assets was $72 million, excluding certain closing costs, which was funded from the company’s cash on hand.
W&T says the transaction provides strong producing properties, all of which are 100% working interest (average 82% net revenue interest) and are located adjacent to a W&T existing area of operations.
The transaction includes estimated production that has ranged from about 3,700 to 5,700 boe/d (about 68% liquids) during the period month-to-date Jan. 19, 2024. According to the company, it can meaningfully increase production on these properties through workovers, recompletions and facility repairs.
W&T says this transaction added significant proved reserves (1P) of 18.7 MMboe (62% liquids) as of Jan. 1, 2024, at year-end 2023 SEC pricing with a present value discounted at 10% (PV-10) value of $250.4 million. The transaction also provides material upside with proved plus probable reserves (2P) of 60.6 MMboe (78% liquids) as of Jan. 1, 2024 ,at year-end 2023 SEC pricing with a PV-10 value of $629.2 million.
01.22.2024
