W&T Offshore, Inc. WTI announced
today that its wholly owned subsidiary, W & T Energy VI, LLC ("Energy VI"),
has completed the acquisition of exploration and production properties in the
deepwater of the Gulf of Mexico from Woodside Energy (USA) Inc. The
transaction includes a 20% non-operated working interest in the producing
Neptune Field (Atwater Valley blocks 574, 575 and 618 along with an interest
in the associated tension leg platform). In addition, Energy VI is acquiring
all of Woodside's interest in 24 deepwater exploration blocks.
The purchase price is $51 million (subject to customary post-effective date
adjustments) and the assumption of any related asset retirement obligations.
The acquisition was funded from available cash on hand and the revolving
credit facility.
Total net proved reserves acquired are 1.9 million barrels of oil equivalent
(100% classified as proved developed) with a PV-10 of $53 million and probable
net reserves of 1.1 million barrels of oil equivalent^(1). During January
2014, average daily net production from the Neptune Field was approximately
1,660 barrels of oil equivalent (net of royalties), of which 87% was oil.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "The Neptune
Field is a great addition to our growing portfolio of quality deepwater
assets. In addition to its substantial oil reserves and production from
multiple sands, it offers near term exploration upside. In the second half of
2014, there are plans to drill a well into existing pay sands. Longer term,
the northern portion of the field has not been tested, and assuming success,
would substantially increase the size of the field.
"The acquisition also includes 24 additional deepwater blocks with 16
identified prospects, one of which is Arcadius in Garden Banks 346, located
just one block south of our producing Power Play Field."
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