W&T Offshore Inc. has closed the acquisition of Apache's interest in Ship Shoal 349 field, located off the coast of Louisiana, and covering two federal offshore lease blocks, Ship Shoal Blocks 349 and 359, with an effective date of Jan. 1, 2008.
Based on the company's Dec. 31, 2007 reserve report, estimated proved oil and gas reserves of the acquisition are 10 million BOE, or 60.5 Bcfe, of which 83% are oil, and 50% developed. The purchase price of $116.0 million, subject to final customary closing adjustments, was funded with available cash on hand.
Tracy W. Krohn, chairman and CEO, stated "We first acquired an interest in the Ship Shoal 349 field, better known as 'Mahogany,' in 1999 and have been slowly building our interest in the field ever since. We began operating in 2004, and with the closing of this transaction, we now own a 100% working interest in the field."
"Ship Shoal 349 was the first economic subsalt field drilled in the Gulf of Mexico," he continued. "The field's production is currently 1,500 bbls and 2,400 Mcf gross per day, and we are currently exploring several alternatives to increase production including a well stimulation project and using reprocessed seismic to further identify PUD and exploration targets. The reserve adds from Mahogany will help us achieve our stated goal of growing reserves in 2008."
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