W&T Offshore Provides Update on Big Bend Prospect, Operations Update and
Revised Production Guidance
HOUSTON, Nov. 28, 2012
HOUSTON, Nov. 28, 2012 /PRNewswire/ --W&T Offshore, Inc. (NYSE: WTI) today
announced a discovery at the Big Bend exploration prospect in the deepwater
Gulf of Mexico. The well is located on Mississippi Canyon Block 698 in 7,200
feet of water and was drilled to a total depth of 15,989 feet. Open-hole
logging identified approximately 150 feet of net oil pay in two high-quality
Miocene reservoirs. W&T Offshore holds a 20% working interest in this well,
which is operated by Noble Energy, Inc. (NYSE: NBL).
Tracy W. Krohn, W&T Offshore's Chairman and Chief Executive Officer, stated,
"This well is an excellent oil discovery that should provide a very attractive
economic return on investment. It represents the type of deepwater Gulf of
Mexico project that we have increased our exposure to over the last few
years. The logging and pressure/volume/temperature data has confirmed Big
Bend's superb reservoir properties and fluid characteristics that are
indicative of many of the reservoirs in the deepwater Gulf of Mexico."
At our Mahogany field, Ship Shoal 349,we recently recompleted the SS 349 A2
well to a new pay zone which had not previously produced in the field. In
November, the completion achieved an initial production rate of 850 barrels of
oil and 1.1 MMcf per day of gas (1,000 barrels of oilequivalent per day),
which was well aboveexpectations. We have subsequently moved the rig to
conclude the drilling of the A9 ST-2development well to a new producing
location within the "P" sand. This well is part of our ongoing and highly
successful exploitation program for the field and is expected to provide
additional incremental production in the first quarter of 2013.
The West Cameron 73 #2 (30% WI; Walter operated) discovery well is currently
being completed in the deepest pay zone and is expected to be on production
during the third quarter of 2013. At our Matterhorn field, Mississippi Canyon
243,we have commenced operations to drill theA2 replacement well and expect
tohave that well completedearly in the first quarter of 2013. We are
currently drilling the Main Pass 108 B1 ST-2well, which will be the first of
a multi-well exploration program in and around our Main Pass area.
We completed 13 new wells in the Permian Basinat our Yellow Rose field
(Martin, Dawson, Gaines and Andrews counties) so far during the quarter,
bringing the total completed new well count to 59 year to date. During the
month of October, our Yellow Rose field grossproduction averaged
approximately 3,485 barrels (2,685barrels net) ofoil equivalent per day. In
November, we achieved a one dayrate of 4,069 barrels gross (3,133 barrels
net) of oil per day from the field. We are encouraged by the results to date
of our horizontal wells at our Yellow Rose field and expect more horizontal
wells to be part of our 2013 capital budget plans.
In Terry County in the Permian Basin, we have drilled and fracture treated the
Holmes 23-4 Unit 1-H, the first horizontal Wolfcamp well in our Terry County
area. The well is currently in the first few days of flowback. The
secondTerry County horizontal Wolfcampwell, the State Travis-Henson Unit
20#1-His currently drilling.
Outlook: The guidance for full year 2012 represents the Company's best
estimate of the range of likely future results, and is affected by the factors
described below in "Forward-Looking Statements."
Our prior guidance and revised guidance for the full yearis presented below.
Our revised productionguidance for the full year 2012reflectsthe effect of
production deferrals resulting from multiplethird-party pipeline outages,
production delays and lower NGL production across the system. We expect our
production rate at the end of 2012 to beapproximately 50,000 Boe per day, or
300 MMcfe per day.
Prior Full-Year Revised Full-Year
Oil and NGLs (MMBbls) 8.0 – 8.3 8.0 – 8.1
Natural gas (Bcf) 54.7 – 56.8 53.3 - 54.4
Total (Bcfe) 103 – 107 101.3 - 103.0
Total (MMBoe) 17.1 – 17.8 16.9 – 17.2
Operating Expenses Prior Full-Year Revised Full-Year
($ in millions) 2012 2012
Lease operating expenses $215 – $237 No change
Gathering, transportation & production taxes $25– $35 No change
General and administrative $75 – $85 No change
Income tax rate 38% No change
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas producer focused
primarily in the Gulf of Mexico and Texas. We have grown through
acquisitions, exploration and development and currently hold working interests
in approximately 67 producing offshore fields in federal and state waters,
including the deepwater. During 2011, we expanded onshore into West Texas and
East Texas where we are actively pursuing exploration and development
activities. A substantial majority of our daily production is derived from
wells we operate offshore. For more information on W&T Offshore, please visit
our website at www.wtoffshore.com.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements reflect our current
views with respect to future events, based on what we believe are reasonable
assumptions. No assurance can be given, however, that these events will occur.
These statements are subject to risks and uncertainties that could cause
actual results to differ materially including, among other things, market
conditions, oil and gas price volatility, uncertainties inherent in oil and
gas production operations and estimating reserves, unexpected future capital
expenditures, competition, the success of our risk management activities,
governmental regulations, uncertainties and other factors discussed in W&T
Offshore's Annual Report on Form 10-K for the year ended December 31, 2011 and
subsequent Form 10-Q reports found at www.sec.gov or at our website at
www.wtoffshore.com under the Investor Relations section.
CONTACT: Mark Brewer Danny Gibbons
Investor Relations SVP & CFO
SOURCE W&T Offshore, Inc.
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