W&T Offshore, Inc. has closed its acquisition of Shell Offshore’s 64.3% interest in the Fairway Field, along with a 64.3% interest in the associated Yellowhammer gas processing plant, with an effective date of September 1, 2010. This acquisition was part of a larger transaction between Shell and W&T for three Gulf of Mexico deepwater producing fields known as Tahoe, SE Tahoe, and Droshky. As of the close date, the adjusted purchase price paid for the Fairway Field and Yellowhammer gas plant was about $36.7 million. The Fairway Field is located in the shallow state waters south of Mobile Bay, Alabama, and the Yellowhammer plant is located onshore Alabama.
ATP Oil & Gas reported oil and gas production for the second quarter 2011 was 2.1 MMboe compared to 1.9 MMboe for second quarter 2010, an 11% increase. Average prices were up 68% over the same period a year ago. Oil represented 68% of total production for second quarter 2011, compared to 48% in second quarter 2010.
Contango Oil & Gas Company reported the company is still on schedule for production to begin at its Vermilion 170 (Swimmy) discovery in September 2011 at an estimated rate of 15 MMcfe/d net. Meanwhile, the exploration plan for Contango’s Ship Shoal 121/134 (Eagle) prospect was submitted to the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) on March 3, 2011, and approved on July 11, 2011. The application for permit to drill is expected to be approved in September 2011.