W&T Offshore has completed the acquisition of 1,500 net acres in the Permian Basin located in West Texas, US, from private sellers for $366m.

The company estimates the area has proved reserves of 27 million barrels of oil equivalent and probable reserves of approximately 26 million barrels of oil equivalent.

The proved reserves are approximately 91% oil and natural gas liquids, the company said.

W&T Offshore chairman and chief executive officer Tracy W Krohn said the recent acreage has 73 wells producing 2,950 barrels of oil equivalent per day and hundreds of proved undeveloped and probable well locations.

For the balance of 2011, the company has allocated between $35m and $40m in capital expenditure associated with planned development, and expects to maintain an active drilling programme with at least three rigs working in West Texas, Krohn said.

The company will initially target the Dean, Spraberry, Strawn and Wolfcamp formations in the Wolfberry trend.