W&T Offshore has completed the acquisition (through its wholly owned subsidiary, W&T Energy VI, LLC) of all of the interests of Total in three federal offshore lease blocks located in the Gulf of Mexico for a purchase price of $150 million, subject to customary closing adjustments, with an effective date of January 1, 2010. W&T acquired a 100% working interest in Mississippi Canyon block 243 ("Matterhorn") and a 64% working interest in Viosca Knoll blocks 822 and 823 ("Virgo"). The fields are currently producing and the net average daily production rate for March 2010 was 5,664 barrels of oil equivalent per day, of which approximately 67% were oil and natural gas liquids. The estimated proved oil and natural gas reserves on the effective date (determined using the unweighted average of first-day-of-the-month commodity prices over the 12-month period ending December 31, 2009) were 11.6 million barrels of oil equivalent ("Boe").
Tracy Krohn, Chairman and Chief Executive Officer, stated, "The acquisition of Total's interests in Matterhorn and Virgo, both highly prolific deepwater fields with additional development and exploration potential meets all of our acquisition criteria. These fields are also within close proximity of our existing assets, thereby expanding our ability to bring potential future deepwater discoveries on production quicker."
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