W&T Offshore Inc. completed the acquisition of six fields in shallow waters of the Gulf of Mexico for $72 million. The company was the successful bidder for certain assets offered by MLCJR LLC, Cox Oil Offshore LLC, Cox Operating LLC, Energy XXI GOM LLC, Energy XXI Gulf Coast LLC, EPL Oil & Gas LLC, and M21K LLC (debtors).
The fields, ranging in water depth of 15-400 ft, include Eugene Island 064, Main Pass 061, Mobile 904, Mobile 916, South Pass 049, and West Delta 073, all of which include a 100% working interest and an average 82% net revenue interest. Estimated production month to date (Jan. 19) is 3,700-5,700 boe/d (68% liquids), while the six fields produced about 8,300 boe/d (48% liquids) on average in April 2023, the month prior to the bankruptcy filing by the debtors in May 2023.
W&T Offshore plans to invest in a series of workovers, recompletions, and general maintenance work that it believes will increase total production from the fields.
As a result, the operator now plans to defer drilling the proven, undeveloped Holy Grail well at Garden Banks 783 in Magnolia field. W&T Offshore will explore a drilling joint venture that may include certain of the company’s 100% owned and operated deepwater wells, including Holy Grail (3,900 ft of water), Thunderbolt (500 ft of water), Zeus (500 ft of water), and Redbolt (500 ft of water). Additionally, the operator plans to drill at least one shelf exploratory well in the drilling joint venture.
The Gulf of Mexico producing properties acquisition is the second in the last 4 months, Tracy W. Krohn, chairman, president, and chief executive officer, said in a release Jan. 22.
In September 2023, the company closed a deal to acquire working interests in eight shallow water oil and gas producing assets in the central and eastern shelf region of the Gulf of Mexico (OGJ Online Sept. 22, 2023).
Krohn said that with combined, the two deals have added almost 22 MMboe of proved reserves for about $104 million, and that acquisitions continue to be a “key component” as the company seeks to further enhance the scale of the company.
