W&T Offshore has agreed to pay $47 million in cash for working interests in and operatorship of oil- and gas-producing properties in federal shallow waters in the central region of the Gulf of Mexico. The sellers are privately held ANKOR E&P Holdings Corp. and KOA Energy.
The transaction adds internally estimated proved reserves of 5.5 million barrels of oil equivalent (Boe) (69 percent oil) and proved and probable reserves of 7.6 million Boe (75 percent oil). The current estimated production is 3.4 MBoe per day (74 percent oil).
The acquisition includes 53 producing wells and 16 structures.
The acquisition, which is expected to close by the end of the first quarter of 2022, will be funded entirely using cash on hand.
“I am pleased to announce this acquisition of oil-weighted operated producing properties that are generating positive cash flow,” said Tracy Krohn, chairman and CEO of W&T. “It meets all of our selection criteria, has a str