W&T to acquire Total GoM assets

W&T Offshore has agreed with Total E&P USA to acquire Total's interest in three offshore blocks in the US Gulf of Mexico: Mississippi Canyon block 243 (Matterhorn) and Viosca Knoll blocks 822 and 823 (Virgo).

Offshore staff


HOUSTON -- W&T Offshore has agreed with Total E&P USA to acquire Total's interest in three offshore blocks in the US Gulf of Mexico: Mississippi Canyon block 243 (Matterhorn) and Viosca Knoll blocks 822 and 823 (Virgo). Under the terms, W&T would get Total’s 64% interest in Virgo and its 100% interest in Matterhorn.

The transaction is expected to close in this quarter.

The Matterhorn field, in 2,800 ft (853 m) water depth, started producing in 2003 and by the end of 2009 it averaged 5,200 boe/d. The Virgo field, in 1,130 ft (344 m) water depth, started producing in 1999 and reached 2,000 boe/d at the end of 2009.

"The acquisition of Total's interest in the Matterhorn and Virgo fields is a part of our strategic plan to increase our reserves and production in the deepwater of the Gulf of Mexico,” says Tracy Krohn, W&T chairman and CEO.

Total says this sale finalizes the reorganization of its activities in the GoM. It will focus on areas of growth in deepwater, the company says.

4/8/2010

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