W&T Offshore Inc. said its 2011 capital budget is $310 million and will be funded entirely from cash flow.
The budget contains capital to drill 14 wells, including 10 exploration and four development wells. Of the 14 wells, five are on the conventional shelf, one is in the deepwater, two target the deep shelf of the Gulf of Mexico, and six wells are located onshore.The planned spending excludes a pending acquisition of the Gulf of Mexico producing shelf property from Shell Offshore Inc. (see Daily GPI, Nov. 8, 2010), as well as other potential acquisitions.
“Our capital budget for 2011 offers a balance of onshore, offshore, high-potential exploration and low-risk exploitation/development activity with an emphasis on oil projects,” said CEO Tracy W. Krohn. “While this budget does not include acquisitions, including the pending acquisition of a property from Shell, we have adequate liquidity to enhance our 2011 program with asset purchases and joint ventures.
“Our intent in 2011 is to continue to purse acquisitions as we did in 2010 and before. As we enter 2011 we are actively evaluating several opportunities and expect to complement our drilling and exploitation projects with attractive acquisitions.”
During conference calls last year with financial analysts Krohn emphasized acquisitions as a component of the W&T growth strategy (see Daily GPI, May 5, 2010; Feb. 26, 2010).
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