W&T Offshore, Inc. (NYSE:WTI) Files An 8-K Completion of Acquisition or Disposition of Assets

W&T Offshore, Inc. (NYSE:WTI) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition or Disposition of Assets.

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On August 30, 2019, W&T Offshore, Inc. (the “Company”) completed the previously announced purchase (the “Transaction”) of ExxonMobil Corporation’s interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico, offshore Alabama, and related onshore and offshore facilities and pipelines. After taking into account customary closing adjustments and an effective date of January 1, 2019, cash consideration paid by the Company was $167.6 million, which includes a previously funded $10.0 million deposit made to a purchase and sale agreement, dated as of June 26, 2019 . The Company has estimated net proved reserves acquired to be approximately 74 million barrels of oil equivalents (Boe) (using a 6 Mcf to 1 barrel equivalency) as of the effective date of January 1, 2019, based on October 15, 2018 New York Mercantile Exchange (“NYMEX”) forward strip Henry Hub natural gas and West Texas Intermediate oil prices, of which 22% are liquids and 99% are proved developed producing. Net production from the assets acquired in the Transaction averaged 19,800 net Boe per day (25% liquids) during the first quarter 2019. The properties acquired include working interests in nine offshore producing fields in the Gulf of Mexico and an onshore treatment facility that are adjacent to existing properties owned and operated by the Company. The acquisition was funded by cash on hand and borrowings under the Company’s previously undrawn revolving bank credit facility. The Company will also assume asset retirement obligations associated with these assets.

Item 7.01     Regulation FD Disclosure.

On September 3, 2019, the Company issued a press release announcing the closing of the Transaction. The Company also announced in the press release that it is the apparent high bidder on two shallow water blocks in the Gulf of Mexico Outer Continental Shelf Region-wide Oil and Gas Lease Sale 253 held by the Bureau of Ocean Energy Management on August 21, 2019. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

The Company will file the financial statements with respect to the Transaction described in Item 2.01 as required by this Item not later than 71 calendar days after the latest date on which this Form 8-K is required to be filed.

The Company will file the pro forma financial statements with respect to the Transaction described in Item 2.01 as required by this Item not later than 71 calendar days after the latest date on which this Form 8-K is required to be filed.

 
 

to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

W&T OFFSHORE INC Exhibit
EX-99.1 2 ex_157225.htm EXHIBIT 99.1 ex_157225.htm   Exhibit 99.1 PRESS RELEASE             CONTACT: Al Petrie Janet Yang FOR IMMEDIATE RELEASE   Investor Relations Coordinator EVP & CFO     [email protected][email protected]     713-297-8024 713-624-7326           W&T Offshore Completes Acquisition of Producing Properties in Gulf of Mexico and Named Apparent High Bidder on Two Blocks in the Latest Gulf of Mexico Lease Sale   HOUSTON,…
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About W&T Offshore, Inc. (NYSE:WTI)

W&T Offshore, Inc. is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. The Company owns a platform in the Gulf of Mexico located in a National Marine Sanctuary. The Company’s fields are located in federal and state waters in the Gulf of Mexico. The fields are found in water depths ranging from 10 feet to 7,200 feet. The Company’s fields include Ship Shoal 349 Field (Mahogany), Fairway Field, Miss. Canyon 243 (Matterhorn), Viosca Knoll 783 (Tahoe/SE Tahoe), Miss. Canyon 782 (Dantzler), Main Pass 108, Brazos A133, Ewing Bank 910, Miss. Canyon 698 (Big Bend) and Miss. Canyon 538/582 (Medusa). The Company sells its crude oil, natural gas liquids (NGLs) and natural gas to third-party customers. The Company’s subsidiary is W & T Energy VI, LLC.

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