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January 10, 2022

W&T Offshore to acquire producing properties in the Gulf of Mexico

The properties considered for acquisition include 53 producing wells and 16 structures.

W&T Offshore has agreed to acquire stakes in producing oil and gas properties in the Gulf of Mexico (GOM) from privately-held Ankor E&P and KOA Energy, for $47m.

According to the terms of the deal, W&T will acquire operated producing shallow water assets in the central region of the GOM at Ship Shoal 230, South Marsh Island 27/Vermilion 191, and the South Marsh Island 73 fields.

W&T will also assume related asset retirement obligations, subject to normal and customary post-effective date adjustments.

Located in federal shallow waters in the central region of the GOM, the properties include 53 producing wells and 16 structures.

As per the estimates, the properties’ current production is 2,500 barrels of oil per day and 5.4 million cubic feet per day of natural gas.

W&T Offshore expects the acquisition to increase its acreage by approximately 57,500 gross acres (46,000 net acres) in federal shallow water.

W&T Offshore chairman and CEO Tracy W Krohn said: “I am pleased to announce this acquisition of oil-weighted operated producing properties that are generating positive cash flow.

“It meets all of our selection criteria, has a strong base of proved developed reserves, provides us with identified upside potential without significant capital costs, and allows us the ability to reduce costs to further increase free cash flow.

“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 maximise the value of these assets.”

The transaction is planned to be closed by the end of the first quarter of 2022.

In December last year, Shell announced that it had made another deep-water discovery in the Gulf of Mexico.

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