W&T Offshore Apparent High Bidder on Two Gulf of Mexico Blocks in Lease Sale 259

Rhea-AI Summary

W&T Offshore is the apparent high bidder for two blocks in the Gulf of Mexico Lease Sale 259, held on March 29, 2023. The company bid on Eugene Island South Addition blocks 371 and 387, totaling around 10,000 gross acres, for approximately $340,000. These leases would provide a 100% working interest with a five-year term and an 18.75% royalty. The Bureau of Ocean Energy Management will confirm the awards in the next 90 days. CEO Tracy W. Krohn expressed confidence in maximizing opportunities in the Gulf of Mexico, given the company's extensive experience and track record.

Positive

• W&T Offshore bid on two promising blocks in the Gulf of Mexico, indicating potential for future growth.
• The company will acquire significant acreage (10,000 gross acres) if awarded, expanding its operational footprint.
• The total bid of approximately $340,000 reflects a strategic long-term investment.

Negative

• The Bureau of Ocean Energy Management may choose not to award the leases despite the high bid.

HOUSTON, April 04, 2023 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today announced that the Company was the apparent high bidder on two blocks in the Gulf of Mexico (“GOM”) Lease Sale 259 held by the Bureau of Ocean Energy Management (“BOEM”) on March 29, 2023.

Lease Sale 259

W&T was the apparent high bidder in the most recent GOM lease sale on two shallow water blocks, Eugene Island South Addition block 371 and Eugene Island South Addition block 387. These two blocks cover a total of approximately 10,000 gross acres. If awarded, the Company will pay approximately $340,000 in total for the awarded leases combined, which reflects a 100% working interest in the acreage. The blocks have a lease term of five years and an 18.75% royalty. Despite submitting the apparent high bid on these leases, the BOEM reserves the right not to award the blocks based on their minimum bidding criteria. W&T expects to receive the final award results over the next 90 days.

Tracy W. Krohn, Chairman and Chief Executive Officer, stated, “We appreciate the opportunity to once again bid on blocks in the GOM and will continue to invest in this outstanding basin where our extensive experience and track record of success differentiates W&T. We look forward to utilizing our properties and infrastructure to maximize opportunities in the GOM for many years to come.”

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer, active in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. As of December 31, 2022, the Company holds working interests in 47 offshore fields in federal and state waters (45 fields producing and two fields capable of producing, which include 39 fields in federal waters and eight in state waters). The Company currently has under lease approximately 625,000 gross acres (457,000 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 8,000 gross acres in Alabama State waters, 458,000 gross acres on the conventional shelf and approximately 159,000 gross acres in the deepwater. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com.

CONTACT:

Al Petrie Investor Relations Coordinator investorrelations@wtoffshore.com 713-297-8024

Janet Yang Executive Vice President and CFO jyang@wtoffshore.com 713-626-8525

FAQ

What is WTI's recent bidding activity in the Gulf of Mexico?

W&T Offshore was the apparent high bidder on two blocks in the Gulf of Mexico Lease Sale 259.

What are the details of W&T Offshore's Lease Sale 259 bids?

W&T Offshore bid on Eugene Island South Addition blocks 371 and 387, covering about 10,000 gross acres for approximately $340,000.

When will W&T Offshore know the results of Lease Sale 259?

The Bureau of Ocean Energy Management will announce the final award results within the next 90 days.

What are the terms of the leases W&T Offshore is bidding on?

The leases have a 100% working interest, a five-year term, and an 18.75% royalty.