On December 12, W&T Offshorecompleted an oil-weighted producing property acquisition from ConocoPhillips which is comprised of a 75% working interest in and operatorship of the Magnolia Field in the central region of the deepwater Gulf of Mexico, offshore Louisiana, at Garden Banks blocks 783 and 784 for USD 20.0 million and the assumption of all abandonment obligations associated with the properties. This adds net proved reserves of 4.1 million boe of which 73% are proved developed producing and 67% are oil and 5% natural gas liquids. The transaction increases W&T's deepwater acreage by 11,500 gross and 8,600 net acres. October 2019 production from Magnolia was 2,300 boe/d (82% oil). This property has the potential for additional upside from additional pay sands in existing wellbores and future opportunities for drilling.
The transaction was funded from available cash on hand and an existing revolving credit facility. The effective date is October 1st, and the transaction closed on December 12th.