By OGJ editors
HOUSTON, Jan. 24 -- W&T Offshore Inc. agreed to buy all of Kerr-McGee Corp.'s interests in oil and natural gas properties on the Gulf of Mexico's Outer Continental Shelf for $1.34 billion in cash, subject to certain adjustments.
In addition, W&T Offshore will assume the abandonment liabilities, which Kerr-McGee listed at $135 million as of yearend 2005. The transaction, subject to regulatory approval, is expected to close during the first half.
Kerr-McGee expects net aftertax cash proceeds of $925 million. The sale involves about 500 wells and 100 fields.
Properties involved in the sale are typically in less than 1,000 ft of water and span from near Corpus Christi, Tex., to Mobile, Ala.
Net production from the divestiture properties, which remains restricted as a result of hurricanes Katrina and Rita, is 25,000 boe/d, representing 10% of the company's overall production.
Dave Hager, Kerr-McGee chief operating officer, called the sale "the final step" in the company's previously announced plans to divest its lower-growth, shorter-lived properties.
