W&T Offshore, Inc., an independent oil and natural gas producer, has closed its acquisition of oil and gas producing properties in federal shallow waters in the central region of the Gulf of Mexico from privately-held ANKOR E&P Holdings Corporation and KOA Energy LP.
The assets are located in the Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields. After normal and customary post-effective date adjustments, cash consideration of approximately US$30.2mn was paid to the sellers using cash on hand.
The acquisition will add internally-estimated proved reserves of 5.5 million barrels of oil equivalent (Boe) (69% oil) and proved and probable, or 2P, reserves of 7.6 million Boe (75% oil).
It will add more than 50 gross producing wells (average working interest of 80%) across three shallow water fields to the company’s working interests in 41 producing fields. In such a developed field many of these assets will likely be closing in on their twilight years, presenting an opportunity for well intervention service providers to maintain their production rates and extend their life-span.
Tracy W. Krohn, Chairman and Chief Executive Officer, commented, “Now that we’ve closed the transaction, we’ll begin working on realising the synergies we’ve identified and maximising the value of these assets. We will continue to seek other accretive transactions that can further enhance shareholder value.”