W&T Offshore, Inc. (WTI) provided an update on its first operated Wolfcamp B well at its Yellow Rose field in the Permian Basin of West Texas. The Chablis 9H has reached a 24-hour peak initial production rate of 549 barrels of oil equivalent per day (Boepd). When normalized to a 7,500 foot lateral length, this equates to a rate of 697 Boepd. The oil cut for the Chablis 9H is approximately 73% of the production stream.
The company is currently planning to spud a second operated Wolfcamp B well in mid March. Given the recent successes in the nearby acreage, the company expects to test additional horizontal benches this year with the Spraberry and Wolfcamp D as the most likely targets.
W&T Offshore is an independent oil and natural gas producer with offshore operations in the GoM and onshore activities in the Permian Basin of West Texas and in East Texas. The company has grown through acquisitions, exploration and development, and currently holds working interest in approximately 71 offshore fields in federal and state waters (65 producing and six fields capable of producing).
W&T Offshore currently has under lease over 1.4 million gross acres, including over 710,000 gross acres on the Gulf of Mexico shelf, over 480,000 gross acres in the deepwater and over 220,000 gross acres onshore in Texas. The majority of daily production is derived from wells it operates offshore.
W&T Offshore currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.
Meanwhile, one can consider better-ranked players from the same industry such as Helmerich & Payne, Inc. (HP), Matrix Service Co. (MTRX) and Patterson-UTI Energy Inc. (PTEN). All these stocks sport a Zacks Rank #1 (Strong Buy).
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