W&T Offshore closes bolt-on GoM producing asset acquisition

W&T Offshore Inc., Houston, paid $17.5 million to acquire the remaining working interests in Gulf of Mexico oil and gas producing properties purchased earlier this year from an undisclosed private seller.

The assets, acquired from an undisclosed seller, lie in Federal shallow waters in the central region of the Gulf of Mexico at Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields.

The deal further consolidates the company’s ownership over the interests, adding an average of 20% working interest in over 50 gross producing wells currently operated by the company across three shallow water fields. The deal adds internally estimated proved reserves of about 1.4 MMboe (70% oil) and proved and probable reserves of 2.0 MMboe (75% oil) as of Dec. 31, 2021, assuming strip pricing as of Mar. 2, 2022.

The deal, which closed Apr. 1, provides additional upside from additional pay sands in existing well bores and potential opportunities for future drilling, the company said.

W&T Offshore, in February, closed a deal to acquire working interests in and operatorship of oil and gas producing properties in Federal shallow waters in the central region of the Gulf of Mexico from privately held ANKOR E&P Holdings Corp. and KOA Energy LP (OGJ Online, Jan. 10, 2022).