Gulf of Mexico driller W&T Offshore, Inc. (ticker: WTI) has agreed to divest its ownership in overriding royalty interests in the Permian Basin for $56.8 million.  WTI said and it expects to close the Permian transaction on or before October 1.

W&T Offshore also has successfully drilled an exploration well from the South Timbalier 311 platform that is part of the Ewing Bank 910 field.  The ST 320 A-2 exploratory well has reached total depth and is being prepared for completion. The Company logged approximately 163 feet of net hydrocarbon, which exceeds pre-drill estimates.  W&T expects to have the well on production via existing infrastructure before year-end 2018.

W&T Offshore’s Chairman and CEO Tracy Krohn said, “The divestiture of our non-core, non-operated onshore asset will enhance our already strong cash position as we optimize our balance sheet for future growth.  We are continuing to have excellent drilling success in the Gulf of Mexico and delivering solid results for our JV.”

GOM well discovers 163 feet of net pay in the Gulf

W&T has working interests in 48 producing fields in federal and state waters and has approximately 650,000 gross acres under lease including approximately 440,000 gross acres on the Gulf of Mexico Shelf and approximately 210,000 gross acres in the deepwater.

The Permian divestiture makes W&T a pure play Gulf of Mexico player.

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