W&T Offshore Inc. announced a $17.5 million bolt-on acquisition on April 5 consisting of the remaining working interests in three federal shallow-water fields the Houston-based company had initially acquired an interest in earlier this year.

“We were pleased when we were able to purchase our initial interests in these fields in the first quarter of the year and this transaction further consolidates our ownership over those assets,” Tracy W. Krohn, chairman and CEO of W&T Offshore, commented in a company release.

The assets are located in federal shallow waters in the central region of the U.S. Gulf of Mexico at Ship Shoal 230, South Marsh Island 27/Vermilion 191 and South Marsh Island 73 fields. W&T Offshore had initially acquired an interest in the three fields through a $47 million cash acquisition that closed in February.

“As was noted when we announced the original acquisition earlier this year,” Krohn said, “the assets are very complementary to our existing assets with a solid base of proved reserves and strong free cash flow and upside potential.”

“Acquisitions such as this one are one way that we create value for our shareholders, and we will continue to seek other accretive transactions,” he added.

The bolt-on acquisition announced April 5 adds an average of 20% working interest in over 50 gross producing wells currently operated by W&T Offshore across the three shallow-water fields, according to the release.

The estimated net sales rate of the additional interests is approximately 900 boe/d (~80% oil) and provides additional upside from additional pay sands in existing well bores and potential opportunities for future drilling.

W&T Offshore also said the bolt-on will add internally-estimated proved reserves of approximately 1.4 million boe (70% oil) and proved and probable, or 2P, reserves of 2 million boe (75% oil) as of year-end 2021 assuming strip pricing as of March 2.

The bolt-on acquisition had an effective date and closing date of April 1. W&T Offshore paid the cash consideration of approximately $17.5 million to the undisclosed seller using cash on hand, according to the release.