W&T Offshore Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by W&T Offshore, Inc. on May 26, 2011, regarding events occurring on May 11, 2011. The filing addresses an update to the estimated proved reserves associated with the acquisition of oil and gas leasehold interests in the West Texas Permian Basin from Opal Resources LLC and Opal Resources Operating Company LLC.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity figures. The primary metric disclosed is the adjustment of estimated proved reserves:
- Acquired Proved Reserves: Approximately 30 million barrel equivalents (182 Bcfe) as of December 31, 2010.
- Reserve Composition: Over 91% oil and natural gas liquids.
- Development Status: Approximately 78% proved undeveloped.
- Acquisition Size: Approximately 21,900 gross acres (21,500 net acres).
Material Changes Versus Prior Period
The Company adjusted the previously announced estimated proved reserve data related to the May 11, 2011 acquisition following a reserve report from independent petroleum engineers. The estimated proved reserves were increased from the previously announced 27 million barrel equivalents (164 Bcfe) to 30 million barrel equivalents (182 Bcfe).
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard disclosure of the reserve adjustment. The update reflects a revision based on independent engineering analysis rather than a change in operational strategy.
Investor Verification Checklist
- Verify the independent petroleum engineer's report supporting the increase from 27 to 30 million barrel equivalents.
- Confirm the capital expenditure requirements for the 78% of reserves classified as proved undeveloped.
- Review the May 13, 2011 Form 8-K for the original acquisition terms and initial reserve estimates.
- Assess the impact of the 6-to-1 Mcf to barrel equivalency ratio used in the calculation.