W&T Offshore, Inc. WTI, in line with its focus on new projects, announced a new discovery at Ewing Banks 910. The company also announced commencement of production from the SS #6 well at Mississippi Canyon 538 field ("Medusa"). Both projects are in the deepwater of the Gulf of Mexico (GoM). The company also provided an update on the status of the Big Bend and Dantzler deepwater development projects.
W&T made a new discovery at Ewing Banks 910 with the successful drilling and evaluation of the Ewing Banks 910 A-5 ST well. The company logged 160 feet of gross hydrocarbon interval and is currently completing the well. The well is expected to be online and flowing by the end of the second quarter. W&T has a 50% working interest in this well.
The next well to be drilled at Ewing Banks 910 will be the A-8 exploration well, which based on seismic data, is estimated to be a significantly larger reserve target. The company also announced that the recently drilled Medusa SS #6 well has been completed. It has achieved first production flowing at a gross rate of approximately 8,000 barrels of oil and 6 MMcf of natural gas for a combined total rate of 9,000 barrels of oil equivalent per day. A second extension well at Medusa, the SS #7 well is currently being completed. W&T has a 15% working interest in the Medusa field.
The company also announced steady progress on the work to bring the Mississippi Canyon 698 "Big Bend" and Mississippi Canyon 782 "Dantzler" fields on line. Three vessels are currently in the field, with one performing umbilical installation work, one conducting sea trials before the pipeline system is installed and another serving as a flotel for the preparation of the topside facilities at "Thunderhawk", the host platform.
Production from Big Bend is expected to commence in the fourth quarter of 2015 and production from Dantzler is expected to commence near the end of 2015. The anticipated combined rate from Big Bend and Dantzler is expected to reach in excess of 8,000 barrels of oil equivalent per day, net to our 20% working interest (81% oil).
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 a working interest in approximately 63 offshore fields in federal and state waters (61 producing and two fields capable of producing).
W&T Offshore currently has under lease over 1.2 million gross acres, including approximately 0.6 million gross acres on the Gulf of Mexico Shelf, approximately 0.5 million gross acres in the deepwater and approximately 50,000 gross acres onshore, primarily in Texas. Most of the daily production is derived from wells it operates offshore.
The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include LRR Energy LP LRE, Pembina Pipeline Corporation PBA and Transmontaigne Partners LP TLP. All of these sport a Zacks Rank #1 (Strong Buy) and offer above-average returns to investors.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment