Middle East

Buy shallow GoM oil field at W & T offshore

January 10, 2022

Illustration-Credit: Scott Bufkin / Adob ​​eStock

W & T Offshore, an oil and gas company focused on the Gulf of Mexico, will purchase interests and operating rights in oil and gas production facilities in the federal shallow waters of central Gulf of Mexico from the private ANKOR E & P Holdings Corporation and KOA. Agreed to. Energy LP with a total cash consideration of $ 47 million.

W & T operates in the fields of Ship Shoal 230, South Marsh Island 27 / Vermilion 191 and South Marsh Island 73 in the center of GOM to underwrite $ 47 million in cash consideration and associated asset retirement obligations. We are acquiring shallow assets. The acquisition includes 53 production wells and 16 structures.

The transaction will take effect on July 1, 2021 and is expected to close by the end of the first quarter of 2022.

With this acquisition, W & T Offshore has 5.5 million barrels of oil equivalent (Boe) (69% oil) internal estimated reserves and 7.6 million Boe (75% oil) proven and estimated reserves as of July 1. (2P) was added. 2021 assuming the strip price as of December 7, 2021.

The current estimated production of assets is approximately 3.4 MBoe (74% oil) per day.

Buyers said the deal would add more than 50 gross domestic product (80% average work rights) to the three shallow oil fields. Re-completion and operational synergies provide potential benefits. Use your cash to raise funds.

Tracy · W · clone, Chairman and Chief Executive Officer, said: Acquisitions are a core element of how W & T creates value, and this transaction is another great example of an acquisition that adds value to shareholders. It meets all our selection criteria, has a strong foundation of proven development reserves, offers identified upside potential without significant cost of capital, reduces costs and provides free cash flow. You can increase it further.

“These assets are a very good complement to our existing high quality portfolio. Given that we manage other assets near these assets, we leverage our scale and expertise to gain synergies. We are confident that we can maximize the value of these assets. The current environment The acquisition in the Gulf of Mexico remains very good and we seek additional attractive opportunities to present ourselves. I am in a good position to do so. “

https://www.oedigital.com/news/493351-w-t-offshore-to-buy-shallow-water-gom-oil-fields-for-47m Buy shallow GoM oil field at W & T offshore

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