On 12 December 2019, W&T Offshore acquired 75% working interest and operatorship of the producing Magnolia Field, which encompasses Garden Banks block GB 783 and GB 784, from ConocoPhillips. The US$ 20 million deal is effective as of 1 October 2019. Tracy W Krohn, Chairman and Chief Executive Officer of W&T, had this to say: "We are pleased to announce another purchase of producing properties that meets all the criteria we have outlined in the past as necessary to drive increased shareholder value from acquisitions. At the beginning of the year, we announced that we were looking closely at acquisition opportunities and that the current environment for acquisitions in the Gulf of Mexico was very good. We have now executed two accretive transactions in 2019. We will continue to actively pursue any opportunities that meet our criteria and are accretive to W&T."The Magnolia Field was discovered in May 1999 on GB 783 in 1,433m of water. The well, G11573 A1 BP1, was drilled to a depth of 5,141m and encountered hydrocarbon-bearing sections of 45-60m net. The field began production in 2004 and the initial development was completed in 2006. Magnolia total net proved reserves are pegged at 4.1 MMboe, of which 67% are oil and 5% natural gas liquids. Current reserves are proved developed and 73% of the reserves are classified as proved developed producing. In October 2019, the Magnolia Field produced ~2,300 boe/d (82% oil) net to ConocoPhillips. Following completion of the December 2019 transaction, equity in GB 783 and GB 784 is now shared between W&T Offshore (75% WI + Op) and Marubeni Oil & Gas (USA) (25%).
Not Found