W&T Offshore Drills 8 Successful Wells in the Gulf of Mexico
W&T Offshore says it is currently producing approximately 96 million cubic feet of gas equivalent (MMcfe) net per day, which represents 51% of the Company's pre-Hurricane Rita and 39% pre-Hurricane Katrina production. The Company also reports that it has been successful with its exploration and development drilling program that includes eight successful wells out of nine wells drilled since the end of the second quarter, six of which were drilled since Hurricane Katrina.
The Company's production is back online in part due to the repairs and availability of third party infrastructure, and processing plant repairs, some of which occurred earlier than anticipated. W&T expects additional production to return online over the next several weeks, as further field repairs are completed and third party processing plants and pipelines are brought back online. The Company still estimates that approximately 55 MMcfe per day of its net production is shut-in because of Hurricane Katrina. W&T's pre-Hurricane Katrina and Rita volumes were approximately 245 MMcfe net per day. Based on estimates for deferred production due to the hurricanes, W&T expects third quarter net production to range between 16.3 and 18.0 billion cubic feet of gas equivalent (Bcfe), or between 179 and 197 MMcfe per day.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "The outstanding coordinated efforts between W&T personnel and our various service providers demonstrates what empowered employees can achieve when given a difficult task. Among other activities resulting in increased production, the team coordinated the rerouting of products around a temporarily shut-down processing facility south of Lafayette, Louisiana, to an alternative facility, thereby facilitating the resumption of approximately 40 MMcfe of net daily production. We are focused on developing additional solutions that will further enhance our ability to produce volumes shut-in by the recent storms."
W&T also continues to have success with its exploration and development program. Since the end of the second quarter, the Company successfully drilled four exploration wells and four development wells, with one unsuccessful development well. This includes five successful wells since Hurricane Katrina. Field Name/Well Category Working Interest % Ewing Bank 989 Exploration 100.0% Main Pass 185 Exploration 33.3% High Island A443 A-5ST Exploration 92.0% Drilled since Katrina High Island A443 A-2ST Exploration 84.0% Ship Shoal 177 A-4ST Development 75.0% Ship Shoal 359 A-12 Development 59.0% Eugene Island 349 B-13ST Development 29.0% Eugene Island 107 A-3 Development 25.0% One development well was unsuccessful, as follows: Field Name/Well Category Working Interest % Drilled since Katrina High Island A572 C-23ST Development 4.0%
"For 2005, we have successfully drilled 14 out of 17 exploration wells and
five out of six development wells," continued Mr. Krohn. "Our previously
announced drilling program of a total of 30 exploration and 7 development
wells remains on track for 2005."
Operates 2 Offshore Rigs
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