The transaction is expected to close within the second quarter of 2010, subject to customary closing conditions. The acquisition will be funded from W&T Offshore’s available cash on hand and/or revolving credit facility.
The Matterhorn field, located in a water depth of 2,800ft, started producing in 2003 and by the end of 2009 it was producing an average of approximately 5,200 barrels of oil equivalent per day (boe/d) gross. The Virgo field, located in a water depth of 1,130ft, began producing in 1999 and reached an average production of approximately 2,000boe/d gross at the end of 2009.
Tracy Krohn, chairman and CEO of W&T Offshore, said: “The acquisition of Total’s interest in the Matterhorn and Virgo fields is a part of our strategic plan to increase our reserves and production in the deepwater of the Gulf of Mexico. When consummated, W&T will own a 100% working interest in Matterhorn and a 64% working interest in Virgo.”
W&T Offshore is an oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions.
