W&T Offshore completes Permian assets sale

W&T Offshore, a U.S. oil and gas independent, has closed the previously announced sale of all of its interest in its Yellow Rose field in the Permian Basin of West Texas to Ajax Resources, LLC, and will now focus on pursuing new offshore assets.

Gross pre-tax proceeds from the transaction are $376.1 million, subject to customary closing adjustments, with an effective date of January 1, 2015. W&T also reserved an overriding royalty interest (“ORRI”) based on a sliding scale of one to four percent that is benchmarked to the monthly oil price in the field.

The value of the ORRI will increase with increases in oil prices and higher production volumes. It is anticipated that higher production volumes should occur in the future with increased drilling activity.

The proceeds of the transaction will be used to pay down the outstanding balance under W&T’s secured revolving credit facility and provide additional liquidity for future operations and acquisitions.

More specifically, in its first announcement on the agreed sale of the onshore U.S. assets in September, W&T Offshore said it would use the cash to pursue the acquisition of Gulf of Mexico assets “while valuations are favorable.”

Tracy W. Krohn, W&T Offshore’s Chairman and Chief Executive Officer said at the time: “We believe that current conditions are good for W&T to identify quality offshore producing assets that offer upside exploration and development opportunity.”

W&T currently has under lease around one million gross acres offshore, including nearly six hundred thousand gross acres on the Gulf of Mexico Shelf, approximately four hundred thousand gross acres in the deepwater. The company did not take part in the recent Gulf of Mexico lease sale.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GeoConvention 2019

GeoConvention offers some of the best local and international insights to efficient energy exploration…

read more >

16th MOSCOW INTERNATIONAL OIL AND GAS EXHIBITION

The Moscow International Oil & Gas Exhibition display products like oil and gas products, oil and gas services…

read more >

Erbil International Oil & Gas Exhibition 2019

The event will be held at the Erbil International Fair Ground which is one of the largest energy related events in Iraq…

read more >

THE 24 th IRAN INTERNATIONAL OIL , GAS , REFINING & PETROCHEMICAL EXHIBITION

The second largest OPEC producer, Iran sits atop 11 percent of oil and 18 percent of gas…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply