W&T Offshore Announces Acquisition Of Callon Petroleum Assets
HOUSTON, Oct. 17, 2013
HOUSTON, Oct. 17, 2013 /PRNewswire/ -- W&T Offshore, Inc. (NYSE: WTI)
announced today that it has entered into an agreement with Callon Petroleum
Operating Company ("Callon") to acquire substantially all of Callon's
exploration and production properties in the Gulf of Mexico. The transaction
includes a 15% working interest in the Medusa field (deepwater Mississippi
Canyon blocks 538 and 582), a 10% membership interest in Medusa Spar LLC
(which owns a 75% interest in the Medusa field's production facilities) and
various interests in 12 non-operated Gulf of Mexico fields. The purchase price
is $100 million (subject to customary post-effective date adjustments) and the
assumption of $6.4 million of future asset retirement obligations. The
effective date is July 1, 2013, and the transaction is expected to close on or
about November 30, 2013. The acquisition will be funded from W&T's available
cash on hand and revolving credit facility.
Total net proved reserves to be acquired are 2.4 million barrels of oil
equivalent, all of which are classified as proved developed reserves; probable
reserves of 2.3 million barrels of oil equivalent; and possible reserves of 2
million barrels of oil equivalent. These reserves were determined by
Netherland, Sewell and Associates, Inc., as of July 1, 2013, based on SEC
reserves definitions and recent NYMEX pricing. During September, average
gross daily production from the interests being acquired in the Medusa field
was approximately 7,000 barrels of oil equivalent (1,050 barrels of oil
equivalent net), of which 88% is oil; and the average net daily production
from the remaining properties being acquired was approximately 5.1 million
cubic feet of natural gas equivalent, of which 98% is natural gas.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "We are pleased
to add yet another quality deepwater field to our growing portfolio. The
addition of reserves, production and infrastructure from this acquisition,
coupled with the significant exploration opportunities in addition to our 3P
reserve estimates, supports our ongoing efforts to expand the deepwater
footprint of the company."
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas producer with
operations offshore in the Gulf of Mexico and onshore in both the Permian
Basin of West Texas and in East Texas. We have grown through acquisitions,
exploration and development and currently hold working interests in
approximately 66 offshore fields in federal and state waters (59 producing and
seven fields capable of producing). W&T currently has under lease
approximately 1.3 million gross acres, including approximately 0.6 million
gross acres on the Gulf of Mexico Shelf, approximately 0.5 million gross acres
in the deepwater and approximately 0.2 million gross acres onshore in Texas.
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, 2012 and
subsequent Form 10-Q reports found at www.sec.govor at our website at
www.wtoffshore.comunder the Investor Relations section.
CONTACT: Mark Brewer Danny Gibbons
Investor Relations SVP & CFO
SOURCE W&T Offshore, Inc.
Press spacebar to pause and continue. Press esc to stop.