W&T Offshore is growing its shallow water footprint in the Gulf of Mexico through M&A.
Houston-based W&T Offshore Inc. closed an acquisition of working interests in eight shallow water oil and gas assets in the central and eastern shelf region of the Gulf of Mexico, the company announced Sept. 21. The seller was not disclosed.
The deal delivers to W&T Offshore additional production within the company’s existing operations in water depths of between 25 ft and 265 ft.
The assets include 22,079 net acres with current production of approximately 2,400 boe/d (42% oil). The properties have an average working interest of around 72%.
Around two-thirds of the acquired production is operated, W&T said. As of June 1, estimated proved reserves for the eight properties totaled 3.2 million boe (49% oil).
“All of the producing properties included in the acquisition announced today meet the time-tested investment criteria we have used for our prior successful acquisitions,” said Tracy W. Krohn, chairman, president and CEO at W&T Offshore, in a news release.
The assets were acquired for a gross consideration of $32 million; W&T said the purchase price was funded with cash from its balance sheet.
“We continue to utilize our strong cash position and expertise in acquiring complementary GoM assets to enhance the scale of W&T,” Krohn said. “Acquisitions have been a key component of how we have grown reserves and production at W&T.”
W&T had working interests in 46 fields in federal and state waters as of June 30. The company’s leasehold spans 419,000 net acres off the coasts of Louisiana, Texas, Mississippi and Alabama.
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