W&T Offshore Provides Update on Big Bend Prospect, Operations
Update and Revised Production Guidance
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."
Offshore Update:
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
oil equivalent per day), which was well
above expectations. We have subsequently moved the rig
to conclude the drilling of the A9 ST-2 development 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 the A2
replacement well and expect to have that well
completed early in the first quarter of 2013. We are
currently drilling the Main Pass 108 B1 ST-2 well, which will
be the first of a multi-well exploration program in and around our
Main Pass area.
Onshore Operations
We completed 13 new wells in the
Permian Basin at 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
gross production averaged approximately 3,485 barrels
(2,685 barrels net) of oil equivalent per day. In
November, we achieved a one day rate 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 second Terry
County horizontal Wolfcamp well, the State Travis-Henson Unit
20 #1-H is 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
year is presented below. Our revised
production guidance for the full year
2012 reflects the effect of production deferrals
resulting from multiple third-party pipeline outages,
production delays and lower NGL production across the system.
We expect our production rate at the end of 2012 to
be approximately 50,000 Boe per day, or 300 MMcfe per
day.
Estimated Production
|
Prior
Full-Year
2012
|
Revised
Full-Year
2012
|
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
($ in millions)
|
Prior
Full-Year
2012
|
Revised
Full-Year
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.
Forward-Looking Statements
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
|
|
investorrelations@wtoffshore.com
|
investorrelations@wtoffshore.com
|
|
713-297-8024
|
713-624-7326
|
SOURCE W&T Offshore, Inc.