W&T Offshore Closes Kerr-McGee Transaction

The properties involved in this transaction include interests in approximately 100 fields on 242 offshore blocks (including 88 undeveloped blocks) spreading across the Western, Central and Eastern U.S. Gulf of Mexico, primarily in water depths of less than 1,000 feet. The closing of the transaction makes W&T Offshore the third largest shelf acreage holder in the Gulf of Mexico with over 2 million gross acres. The transaction will also provide over 92 additional exploration prospects to the Company's inventory.

Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "By far, this is the largest transaction in the Company's history and we are anxious to begin exploring and optimizing these properties. We have established a solid track record for exploiting acquired assets and are confident that these properties offer as much upside potential as those we have acquired in the past. With the significant inventory of exploration prospects included in this transaction, we expect to be able to further demonstrate that not only are we skilled at making good acquisitions, but we are very accomplished explorers as well."

As a result of closing adjustments, the transaction statistics differ from those previously announced as follows:

                                                 1/23/2006      8/24/2006
     Kerr-McGee Transaction                      Estimated       Closing
     Purchase price ($ mm)                        $1,339         $1,030
     Acreage (gross)                               1,338M         1,118M
     Estimated daily production (mmcfe/d)            150            161
          % Gas Production                            74%            73%

W&T has funded this transaction through its senior secured credit facility and with cash on hand as outlined below:

                               ($ in millions)
     Cash                          $   267.9
     Debt:
       Revolver                         75.0
       Term Loan A                     387.5
       Term Loan B                     300.0
                                   $ 1,030.4