W&T Offshore Closes Kerr-McGee Transaction
W&T Offshore has completed the merger transaction with a Kerr-McGee subsidiary owning the Gulf of Mexico conventional shelf properties of Kerr- McGee, as previously announced on January 23, 2006. The effective date of the transaction is October 1, 2005. Kerr-McGee was recently acquired by Anadarko Petroleum.
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
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Company: W&T Offshore more info
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