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W&T Offshore set to acquire stake in Heidelberg field in Gulf of Mexico

Published 13 March 2018

W&T Offshore revealed that it was the successful bidder on a stake in three blocks in the Heidelberg field in the Gulf of Mexico.

The blocks were offered in connection with the Chapter 11 bankruptcy proceedings of Cobalt International Energy and its subsidiaries.  

The successful bid covers all of Cobalt's interest in the Heidelberg Field, which includes a 9.375% working interest in each of Green Canyon 859, 903, and 904.  The Heidelberg Field is operated by Anadarko Petroleum Corporation. 

W&T's bid was for $31.1 million cash.  Closing is expected to occur in April 2018, subject to satisfaction of certain closing conditions, including those set forth in the purchase and sale agreement.

February's gross production from the field was 33,513 barrels of oil per day and 16,705 Mcf per day or 36,300 Boe per day. 

Cobalt's production from the field, net to its interest, was 2,749 barrels of oil per day and 1.4 MMcf per day in February 2018 or almost 3,000 barrels of oil equivalent per day from 5 wells.  The wells flow to the Heidelberg Spar, which is in Green Canyon 860 block.

W&T Offshore chairman and CEO Tracy Krohn said: "We are pleased that W&T was the successful bidder on this quality asset that meets all of our acquisition criteria.  It is being acquired at an attractive valuation and will contribute solid production and reserves, as well as offer upside potential. 

“Finally, this transaction meets an additional objective of being accretive to W&T on a flowing barrel of production.”

Source: Company Press Release