W&T Offshore Inc. (NYSE: WTI) reports that its wholly owned subsidiary, W&T Energy VI LLC (Energy VI), has completed the acquisition of deepwater Gulf of Mexico exploration and production properties from Woodside Energy (USA) Inc. The transaction includes a 20% non-operated working interest in the producing Neptune Field (Atwater Valley blocks 574, 575 and 618, along with an interest in the associated tension leg platform). In addition, Energy VI is acquiring all of Woodside's interest in 24 deepwater exploration blocks.
The purchase price is $51 million and the assumption of any related asset retirement obligations. The acquisition was funded from available cash on hand and the revolving credit facility.
Total net proved reserves acquired are 1.9 million barrels of oil equivalent (100% classified as proved developed) with a PV-10 of $53 million and probable net reserves of 1.1 million barrels of oil equivalent. During January 2014, average daily net production from the Neptune Field was approximately 1,660 barrels of oil equivalent (net of royalties), of which 87% was oil.
Chairman and CEO Tracy W. Krohn said, "The Neptune Field is a great addition to our growing portfolio of quality deepwater assets. In addition to its substantial oil reserves and production from multiple sands, it offers near-term exploration upside. In the second half of 2014, there are plans to drill a well into existing pay sands. Longer term, the northern portion of the field has not been tested, and, assuming success, would substantially increase the size of the field. The acquisition also includes 24 additional deepwater blocks with 16 identified prospects, one of which is Arcadius in Garden Banks 346, located just one block south of our producing Power Play Field."
W&T Offshore is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and onshore in the Permian Basin of West Texas.