W&T Offshore Announces Sale of its Yellow Rose Field in the Permian Basin of West Texas

Source Press Release
Company W & T OffshoreAjax Resources, LLC 
Tags Asset Deals, Deals, Upstream Activities
Date September 01, 2015

W&T Offshore, Inc. (NYSE: WTI) today announced that it has entered into a definitive agreement with Ajax Resources, LLC for the sale of all of its interest in its Yellow Rose field in the Permian Basin.  Gross pre-tax proceeds from the transaction are expected to be approximately $376,100,000, subject to customary closing adjustments.  W&T also reserved a one to four percent sliding scale overriding royalty interest in the field. The transaction is expected to close during the third quarter of 2015, with an effective date of January 1, 2015.

W&T's interest in its Yellow Rose field includes approximately 25,800 net acres in Andrews, Martin, Gaines, and Dawson counties in West Texas.  For the month of July 2015, net production from the Yellow Rose field averaged approximately 3,000 barrels of oil equivalent ("Boe") per day.

We will use the proceeds from the transaction to pay down the outstanding balance under our secured revolving credit facility and provide additional liquidity for future operations and acquisitions. 

Tracy W. Krohn, W&T Offshore's Chairman and Chief Executive Officer, stated, "We are pleased to be monetizing our highly valued Permian Basin acreage. This sale will allow us to strengthen our balance sheet and improve our financial flexibility to pursue the acquisition of Gulf of Mexico assets while valuations are favorable.  We believe that current conditions are good for W&T to identify quality offshore producing assets that offer upside exploration and development opportunity."

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