W&T Offshore Inks Deal with Exxon for GOM Assets
Independent producer W&T Offshore, Inc. has entered into a purchase and sale agreement with ExxonMobil Corp. to acquire oil and gas producing properties in the eastern region of the Gulf of Mexico (GOM) and related onshore processing facilities for $200 million, the company announced Thursday.
The acquisition of the assets – located offshore Alabama – will give W&T working interests in and operatorship of nine GOM offshore producing fields as well as an onshore treating facility near existing W&T properties.
The deal, which will add net proved reserves of 74 million barrels of oil equivalent, will also make W&T the largest operator in the Mobile Bay area.
“We are pleased with this purchase of producing properties which meets all the criteria we have outlined in the past as necessary to drive increased shareholder value from acquisitions,” W&T CEO Tracy Krohn said in a company statement. “These low decline assets are highly accretive, free cash flow positive and adjacent to our current operations… In addition, we also have the opportunity for further growth in reserves from potential field life extensions and drilling and facility upgrade opportunities.”
The deal is expected to close Aug. 30, 2019 and will have an effective date of Jan. 1, 2019.
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