W&T Offshore Inc. drilled an exploration well from the South Timbalier 311 platform in Ewing Bank 910 field in the deepwater Gulf of Mexico and will spud a second well in the field following its completion.
Reaching total depth, the ST 320 A-2 logged 163 ft of net hydrocarbon, exceeding predrill estimates, W&T said. The well is expected to be on production via existing infrastructure before yearend.
Following its completion, the rig will spud the ST 320 A-3 well, another low-risk exploration opportunity in the field. Stratigraphic information from a high-quality, thick Miocene sand that was penetrated up-hole in the ST 320 A-2 well has lowered the perceived risk on the oil prospect, the company said.
Both wells are part of a drilling joint venture program established by W&T and private investors. In total, the combine’s drilling program raised $361.4 million from outside investors and W&T for the development of 14 preidentified projects in the gulf, four of which are under way, or on production.
Because of the combine and other promoted working interests at the ST 320 A-2 well, W&T is expected to contribute 4.8% of the total capital expenditures and will receive 10.8% of the net revenues less expenses until certain thresholds are met, at which time W&T's effective interest in the well will increase to 13.8%.
Meantime, the company agreed to sell its ownership in overriding royalty interests in the Permian basin for $56.8 million.
