By OGJ editors
HOUSTON, Jan. 25 -- W&T Offshore Inc. reported a $400 million capital expenditures budget for 2006, a 30% increase over its initial 2005 budget.
This year's budget outlines $198 million for exploration, $148 million for development, $39 million for plugged and abandoned expenses and seismic surveys, and $15 million for other major expenses.
Plans call for the drilling of 25 exploration wells and seven development wells. Of the anticipated exploration wells, 14 are expected to be conventional wells on the Outer Continental Shelf in the Gulf of Mexico, four will be deep shelf wells, and seven will be deepwater wells.
Last year, the Houston independent successfully drilled 17 exploration wells.
Currently, W&T produces 190 MMcfd net of gas equivalent, 78% of its pre-Hurricane Katrina rate. The company estimates 38 MMcfd of gas equivalent of net shut-in production because of hurricane-related damages.
W&T anticipates that pre-Hurricane Katrina production levels will resume late in the second quarter.
