W&T Offshore’s owned subsidiary, W & T Energy VI, LLC (“Energy VI”), has completed the acquisition of exploration and production properties in the deepwater of the Gulf of Mexico from Woodside Energy (USA) Inc.
The transaction includes a 20% non-operated working interest in the producing Neptune Field (Atwater Valley blocks 574, 575 and 618 along with an interest in the associated tension leg platform). In addition, Energy VI is acquiring all of Woodside’s interest in 24 deepwater exploration blocks.
The purchase price is $51 million (subject to customary post-effective date adjustments) and the assumption of any related asset retirement obligations. The acquisition was funded from available cash on hand and the revolving credit facility.
Total net proved reserves acquired are 1.9 million barrels of oil equivalent (100% classified as proved developed) with a PV-10 of $53 million and probable net reserves of 1.1 million barrels of oil equivalent(1). During January 2014, average daily net production from the Neptune Field was approximately 1,660 barrels of oil equivalent (net of royalties), of which 87% was oil.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, “The Neptune Field is a great addition to our growing portfolio of quality deepwater assets. In addition to its substantial oil reserves and production from multiple sands, it offers near term exploration upside. In the second half of 2014, there are plans to drill a well into existing pay sands. Longer term, the northern portion of the field has not been tested, and assuming success, would substantially increase the size of the field.
“The acquisition also includes 24 additional deepwater blocks with 16 identified prospects, one of which is Arcadius in Garden Banks 346, located just one block south of our producing Power Play Field.”