W&T Offshore expands Gulf of Mexico portfolio

US oil and gas company W&T Offshore has struck a deal with privately-held Ankor E&P Holdings and KOA Energy to acquire working interests in and operatorship of oil and gas producing properties in the US Gulf of Mexico for $47m.

Specifically, W&T is acquiring operated, producing shallow water assets in the central region of the Gulf at Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields. The acquisition includes 53 producing wells and 16 structures. The effective date of the transaction is July 1, 2021, and should close by the end of the first quarter of this year. The acquisition will be funded entirely using cash on hand.

The current estimated production from the properties is 2.5m barrels of oil equivalent (boe) per day of oil and 5.4m cu feet per day of natural gas, or a total of 3.4m boe per day. W&T said its estimates proved reserves as of July 1, 2021, were 5.5m boe, of which 69% is oil. The transaction should increase W&T’s federal shallow water acreage by approximately 57,500 gross acres. The company currently has working interests in 41 producing fields in federal and state waters and has under lease around 611,000 gross acres.

Tracy W. Krohn, W&T chairman and CEO, commented: “Acquisitions are a core component of how we create value at W&T and this transaction is another great example of an acquisition that adds value for our stockholders. 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. The current environment for acquisitions in the Gulf of Mexico continues to be very good and we are well positioned to pursue additional attractive opportunities that present themselves.”

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
Back to top button