W&T Offshore has closed the previously-announced purchase of ExxonMobil interests in. Chairman and Chief Executive Officer Tracy W. Krohn will present at EnerCom’s ‘The Oil & Gas conference. W&T Offshore, Inc reported operational and financial results for the second quarter of 2019. W&T Offshore provided an operational update regarding the successful drilling of the Gladden deep. Operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico.
Company taking into account customary closing adjustments and an effective date of January 1, 2019. Company announced the timing of its first quarter 2019 earnings release and conference call. W&T Offshore, Inc announced that Chairman and Chief Executive Officer Tracy W. Krohn will present at the 2019 IPAA. Cash consideration paid by W&T was $167.6 million which includes a previously funded $10 million deposit. Company was the apparent high bidder on 15 blocks in the Gulf of Mexico.
“we are pleased to have closed our purchase of free cash flow positive”, said Tracy W. Krohn, chairman and CEO.
The acquisition was funded by cash on hand and borrowings on its previously-undrawn revolving bank credit facility. The presentation will be webcast live and archived on W&T’s website. Company entered into a purchase and sale agreement with ExxonMobil Corporation. W&T will also assume asset retirement obligations associated with these assets. Adds net proved reserves of approximately 74 MMboe. It will nearly double W&T’s proved reserves and related equipment and facilities for $200 million as of the effective date.
99% are proved developed producing and 22% are liquids estimated as of the effective date. W&T announced an oil discovery at its first exploration well in 2019. The 2019 Louisiana Energy Conference in New Orleans on Thursday, May 30. W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico. It produced approximately 19,800 net boepd (25% liquids) from the acquired properties in the first quarter of 2019.
The Company currently has working interests in 48 producing fields in federal. It includes working interests in nine GOM offshore producing fields. The Company said it will issue its first quarter 2019 earnings release on last Wednesday. It approximately 515,000 gross acres on the conventional shelf and approximately 205,000 gross acres in the deepwater. An onshore treatment facility are adjacent to existing properties owned and operated by W&T.
The call will also be webcast and available on W&T Offshore’s website. A majority of the Company’s daily production is derived from wells it operates. It creates significant opportunities for synergies, consolidations and cost savings as W&T will become the largest operator in the area. The Bank of America Merrill Lynch 2019 Energy Credit Conference in New York City on last Thursday. W&T was the apparent high bidder on eight deepwater and seven shallow water blocks.
It allows for potential to add incremental reserves with little or no capital by consolidating operations and extending field life. W&T operated the well which is one of the 14 wells planned for the drilling program under the Monza JV. The Stifel 2019 Cross Sector Insight Conference in Boston on Monday, June 10. It includes Garden Banks 173, Green Canyon blocks 3, 46, 47, 49, 91 and 92. It provides additional upside opportunities from potential future drilling locations and facility modifications.
Additionally, W&T is the apparent high bidder on two shallow water blocks, Ship Shoal 332 and 367. An updated investor slide deck prepared in conjunction with the conference will be posted on the website soon. 15 blocks cover approximately 73,500 acres and, if awarded, the Company will pay approximately $3.5 million. The Company will pay approximately $0.3 million for the awarded leases. The Company owns a 17.25% interest in the discovery. The blocks have a five-year lease term and are in close proximity to current W&T acreage.
Tracy W. Krohn says “This provides us the opportunity to recognize increased scale”.
It disclosed mid-year 2019 SEC proved reserves were 84 MMBoe. Gladden Deep is located in approximately 3,000 feet of water. An updated investor deck prepared in conjunction with the conferences. All of the blocks have a five-year lease term, with the exception of one of the deepwater blocks. The low-decline assets add significant reserves and production to portfolio and are adjacent to our current operations. The royalty rate for eight of the blocks is 12.5%, and the remaining seven leases are at a rate of 18.75%.
Company remain active in seeking other new GOM opportunities through our participation in the BOEM. W&T ranked fourth in the number of apparent high bids. It will continue to focus on maximizing value through accretive acquisitions, organic growth. It increased second quarter 2019 revenues by 16% to $134.7 million from $116.1 million in the first quarter of 2019. It generate a solid and consistent source of cash flow with significant upside, it will be further enhanced by this acquisition.