HOUSTON, Dec. 21, 2017 /PRNewswire/ -- W&T
Offshore, Inc. (NYSE: WTI) today provides an update on its
Gulf of Mexico shelf operations at
Ship Shoal 300, Main Pass 286 and South Timbalier 224, and updates
production guidance.
The Company's recently drilled Ship Shoal 300 B-5 ST exploratory well was successful and
achieved first production in mid-November. The well logged
173 feet of hydrocarbon pay in multiple stacked oil sands in a
previously undrilled fault block, successfully extending the aerial
limits of the field. The well was completed as a dual-zone
completion and achieved a peak initial production rate of
approximately 1,100 barrels of oil equivalent ("Boe") per day (95%
oil) from the initial two completion intervals and is set up and
equipped for additional future behind-pipe recompletions in these
newly penetrated multiple stacked oil sands.
The SS 300 B-5 ST well has
outperformed the Company's pre-drill expectations on rate, reserves
and value. In addition, the new higher rate from the B-5 well
is projected to extend field life several years more than
previously estimated, adding significant reserves and value to the
overall Ship Shoal 299 field (which includes the SS 300
block). W&T holds a 79% working interest in and is the
operator of this Gulf of Mexico
shelf well.
The Main Pass 286 #1 exploratory well has reached total depth of
14,562 feet and has logged 112 feet of oil pay. The well is
currently being temporarily abandoned in preparation for completion
and tie back. The well is in an open water location and will
be produced to W&T's Main Pass 283 facility. We expect
first production within the next 12 to 15 months. W&T
holds a 100% working interest in and is the operator of this
Gulf of Mexico shelf well.
The South Timbalier 224 #1 exploratory well recently reached
target depth of 10,900 feet and has been deemed
non-commercial. W&T holds a 39% working interest in and
is the operator of this Gulf of
Mexico shelf well. This is the Company's only dry hole
in the last several years.
The Company is also currently drilling the Ship Shoal 349
(Mahogany) A-17 well and a rig is being mobilized to our Viosca
Knoll 823 (Virgo) platform in approximately 1,100 feet water depth
to begin a three well drilling campaign in this deepwater
program.
During a semi-annual redetermination, the Company's borrowing
base of its revolving bank credit facility has been reaffirmed at
$150 million. Currently,
the credit facility is essentially undrawn with $149.7 million of availability.
Tracy Krohn, W&T Offshore's
Chairman and Chief Executive Officer, stated, "Our Ship Shoal 299
field is another great example of how integrated technical teams
applying the appropriate technology can add materially to
shareholder value. Our Ship Shoal 299 field has long been a
key producer for us, producing more than 35 million barrels of oil
equivalent since first coming on line in 1991. Along with the
Main Pass 286 prospect, our teams are still finding untapped
resources and adding material value through our advanced
technology. Our drilling program continues to make key
discoveries and extend the success which landed us twice on the Top
12 Recent Gulf of Mexico Discoveries as reported by E&P
Magazine.
"We recently reached total depth at our Main Pass 286 well and
have encountered a very nice oil bearing column. This oil
discovery is the first new wildcat success by the industry in the
Main Pass Protraction Area in over a decade. This is a
prospect that was generated in house based on a reprocessed 3D
seismic survey. The well will be tied back to W&T's Main
Pass 283 facility resulting in improved economics. This
is another successful shelf discovery this year following on the
heels of our SS 300 B-5 ST well and
the various successful wells at Mahogany."
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 has grown through
acquisitions, exploration and development. The Company
currently has working interests in approximately 50 producing
fields in federal and state waters and has under lease
approximately 710,000 gross acres, including approximately 460,000
gross acres on the Gulf of Mexico Shelf and approximately 250,000
gross acres in the deepwater. A majority of the Company's
daily production is derived from wells it operates. For more
information on W&T Offshore, please visit the Company's website
at www.wtoffshore.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. 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, 2016
and subsequent Form 10-Q reports found at www.sec.gov or at our
website at www.wtoffshore.com under the Investor Relations section.
Investors are urged to consider closely the disclosures and risk
factors in these reports.
CONTACT:
|
Lisa
Elliott
|
Danny
Gibbons
|
|
Dennard Lascar
Investor Relations
|
SVP &
CFO
|
|
lelliott@dennardlascar.com
|
investorrelations@wtoffshore.com
|
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713-529-6600
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713-624-7326
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SOURCE W&T Offshore, Inc.