W&T Offshore, Inc. has updated second quarter and full-year 2007 production guidance. Total production impact for the second quarter 2007 is a reduction of approximately 2 Bcfe.
Tracy W. Krohn, Chairman and Chief Executive Officer stated, "The Company has had unanticipated production deferral at Mississippi Canyon 718 'Pluto,' other wells produced at rates less than anticipated and we experienced a completion failure at Ewing Bank 989 'Cypress.' Accordingly, the Company is revising both second quarter and full-year guidance downward." Mr. Krohn continued, "Despite the lower production, our realized oil and gas prices were higher than we expected during the second quarter and as a result, the Company will exceed the First Call analysts' consensus estimates, which average $0.44 per share for the second quarter."
W&T is revising its second quarter and full-year 2007 production guidance,
Second Second Revised Prior
Estimated Production Quarter Quarter Full-Year Full-Year
2007 2007 2007 2007
Crude oil (MMBbls) 2.05 - 2.15 2.1 - 2.2 7.7 - 8.0 8.1 - 8.5
Natural gas (Bcf) 18.2 - 18.6 20.0 - 21.0 74.7 - 78.7 84.1 - 88.7
Total (Bcfe) 30.5 - 31.5 32.7 - 34.4 121.0 - 127.0 132.7 - 140.0
Significant contributors to the revision in guidance for the
second quarter and full-year 2007 are:
- Mississippi Canyon 718 "Pluto" -- Life of current reservoir extended from June to November deferring rate increase from recompletion.
- Main Pass 163/185 -- One-month project start up delay.
- Ewing Bank 989 "Cypress" -- Production performance less than forecast, completion sanded up on June 25. Recompletion plans in progress.
- Eugene Island 205 C-4ST -- Completion watered out earlier than expected.