Johnson Rice Energy Conference New Orleans October 2 nd , 2013 - PowerPoint PPT Presentation

Johnson Rice Energy Conference New Orleans – October 2 nd , 2013

Overview - W&T OFFSHORE (NYSE: WTI) Six Months Ended Operating Locations ($ in millions) June 30, 2013 Revenues $494.6 Adjusted EBITDA $311.1 Permian Basin Proved Reserves (PV-10) $2,820.0 (As of December 31, 2012) East Texas Dividend Yield 6.9% (2012) Capital Spending $299.2 (excludes acquisitions) Average Daily Production July August Gulf of Mexico Oil (MBbls/d) 18.6 18.6 As of December 31, 2012 NGLs (Mgal/d) 197.6 219.6 Reserves by Category MMBoe Bcfe Natural Gas (MMcf/d) 120.3 132.6 Proved 117.5 705.1 Total (Mboe/d) 43.3 45.9 Probable 38.4 230.3 Possible 82.4 494.4 Current Avg Daily Prod. (Mboe/d) 47.5 1

Revised 2013 Capital Expenditures Budget • Budget changes still align with the 2013 focus of organic growth – Additional drilling activity in the deepwater with a second exploration well – Completion costs from our earlier successful drilling activity – Additional onshore drilling at our Yellow Rose field – Leasehold and seismic costs to support growth 2013 Revised CAPEX Budget of $550 million 21% 14% Offshore Exploration Offshore Development Onshore Exploration Onshore Development 45% 20% 2

Current Activity for W&T Offshore • Currently participating in the drilling of the “ Dantzler ” deepwater prospect at MC 738/782 operated by Noble Energy • Spud the Ship Shoal 349 “Mahogany” A-15 deep shelf, sub-salt exploratory well • Brought on production the Ship Shoal 349 A-4 recompletion • Mobilizing rig to our EC 321 field to drill the A-2 exploration well • Mobilizing unit to complete the MC 243 A-5 well • Expect sanction of Rio Grande complex to accommodate exploratory deepwater discoveries • Multiple offshore wells coming online during 2H 2013 • Currently drilling our first Wolfcamp “B” horizontal well at our Yellow Rose field • Fifth horizontal in East Texas planned for fourth quarter of 2013 • Acquisition market still showing numerous opportunities 3

Reserves Growth with a Focus on Oil Proved Reserves (MMBoe) 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2009 2010 2011 2012 Crude Oil Proved Developed Total Proved Reserves 4

Continued Oil and Total Production Growth MBoe 18 16 14 12 10 8 6 4 2 0 2010 2011 2012 2013E* Total Production Oil Production * 2013 figures represent the mid-point of full year guidance 5

Growth Opportunities in 3P Reserves Significant growth potential from our 3P reserves • Gross resource potential extends well beyond our 3P reserves Total Company Resources (in MMBoe) Possible PDP 82.4 62.6 Proved 117.5 PDNP 24.3 PUD 30.6 Probable 38.4 6

Multiple Avenues to Achieve Organic Growth ONSHORE TEXAS GOM DEEPWATER GULF OF MEXICO SHELF ─ Deepwater (over 500’) ─ GOM Shelf (under 500’) ─ Permian & East Texas • • • ~220,000 gross acres ~480,000 gross acres ~710,000 gross acres ─ Proved Reserves (1) ─ Proved Reserves (1) ─ Proved Reserves (1) • • • 31.6 MMBoe 27.0 MMBoe 58.9 MMBoe ─ Est. Daily Sales ─ Est. Daily Sales ─ Est. Daily Sales Volumes (2) Volumes (2) Volumes (2) • • • 4,065 Boepd net 15,301 Boepd net 26,785 Boepd net (1) Proved reserve figures are as of year end 2012 (2) Daily sales volumes are estimates based upon preliminary August 2013 sales volumes 7

Balance – The Offshore Component W&T has continued W&T has ~1.2 million gross to grow its footprint acres under lease in the GOM in the Gulf of Mexico through acquisitions and leases sales • 65 lease blocks acquired from Newfield (59 exploratory blocks) • 13 new OCS leases via recent lease sales • Acquired interest in MC698 “Big Bend”, MC699 “Troubadour”, and MC 738/782 “ Dantzler ” • Offshore properties still account for ~ 90% of W&T’s production Leases acquired over past two years W&T Legacy properties 8

Exploration and Development - GOM MP 108 WC 73 #2 Exploration Development B-1 ST: Producing Awaiting flow line hook-up Q4 2013 – 1 st production MC 243 “Matterhorn” Development & Reservoir Support HI 21 A-2 ST: On production A-5: successful well, Development completion operations mobilizing Successful well, Completion operations MC 738/782 “ Dantzler ” EC 321 A-2 ST Exploration Exploration Mobilizing rig Currently drilling SS 349 “Mahogany” MC 698 & 699 Exploration “Rio Grande” complex A-14 Well: T-Sand producing Exploration Discoveries A-15 Well: Well spud, delayed 9

Deepwater Exploration – MC 738/782, “ Dantzler ” MC 738/782 “ Dantzler ” (WI: 20%, NRI: 16.25%) • Summary – Deepwater prospect with reservoir in Lower Miocene against salt. Nearby offset well has oil shows and 1,200’ of significant sand in the MC 698 & MC 699 “Rio Grande” complex target section. • Well currently drilling in 6,574’ of water to a target depth of 19,150’ • Results are expected by year-end Dantzler MC 738/782 “ Dantzler" MC 698 W&T WI: 20% “Big Bend” Total Gross Resource* 50 - 220 MMBoe 2012 discovery (P75 - P25) *All figures are operator (NBL) estimates 10

Deepwater Discoveries – “Rio Grande” Complex MC 698 “Big Bend” and MC 699 “Troubadour” (WI: 20%, NRI: 16.7%) • Summary – Deepwater exploration wells in adjacent lease blocks. Big Bend was a 2012 oil discovery and Troubadour is a 2013 gas discovery drilled in 7,273’ of MC 699 “Troubadour” water to a total depth of 19,510’. The two 2013 discovery properties make up the “Rio Grande” complex. Development planning is progressing and sanction is expected by year end. First production is expected in late 2015. MC 698 "Big Bend " and MC 699 “Troubadour” Rio Grande complex MC 698 W&T WI: 20% (both wells) “Big Bend” Total Gross Resource* 50 - 100 MMBoe 2012 discovery (P75 - P25) Est. Oil Volumes* 75% *All figures are operator (NBL) estimates 11

Exploration – GOM Shelf 2013 Activity at SS 349 SS 349 “Mahogany” Continued Sub-Salt Exploration & Development Success SS 349 A-4 (WI: 100%, NRI: 83.3%) Recomplete Producing • Mahogany production ~ 75% oil • Multi-horizon production ‒ Primary Field Pay is P-Sand Multiple producing horizons ‒ recently discovered • Production platform sits in ~375 SS 349 A-14 feet of water on GOM shelf Deep T-Sand target • Field reached new peak Exploration SS 349 A-15 Discovery in Multi-Sand Target production rate including the new T-sand Exploration T-Sand in late July: Producing 5 stacked target horizons ‒ 9,827 Boepd net (11,792 gross) 12

Exploration – GOM Shelf SS 349 “Mahogany” A -14 Well SS 349 A-14 results: Deep Shelf, Sub-Salt Discovery • Logged ~370’ of total pay (WI: 100%, NRI: 83.3%) • Encountered 5 pay sands • Summary – Exploratory well which • Reserve additions & immediate production discovered new reserves in the T-sand and logged significant additional pay in four additional hydrocarbon bearing zones M, N, & O-sands found pay – • Status – producing from T-Sand resulting in reserve additions with development opportunities • T-Sand peak production rate ‒ 3,870 Boepd net after royalties P- Sand logged over 123’ of (4,644 gross Boepd, 77% crude oil) measured depth pay, more than • Pre-drill unrisked potential anticipated ‒ 3.1 MMBoe (T-sand only, P-sand is additional ~3.0 MMBoe) T-Sand discovery is the Future development opportunities deepest producing horizon in were identified in the M, N, O, and P- the field sands which create additional upside beyond the discovery of the T-sand The A-14 exploration discovery provides significant reserve and production additions, and provides future exploration targets throughout this expanding field. 13

Exploration – GOM Shelf SS 349 “Mahogany” A -15 Well SS 349 “Mahogany” Deep Shelf, Sub-Salt Exploration (WI: 100%, NRI: 83.3%) • Summary – Single well bore targeting five separate sands (N,O,P,Q,Q5) A-15 Project NPV: • Initial Est. Cost - $34.5 million $35 - $120 million • Well spud in September, but is delayed approximately one month for the A-12 well workover • Target well depth from 13,000’ to Target reserve 15,500’ potential: • Target IP – 1,390 Boepd 1.8 – 6.2 MMBoe • Est. 1st production – Q1 2014 • The A-15 targets some of the same The A-15 well will represent the 7 th horizons that logged pay in the A-14 consecutive well at “Mahogany” as part of well (N, O, and P-sands) a two year continuous drilling program. 14

Exploration – GOM Shelf EC 321 A-2 ST EC 321 A & B production (WI: 100%, NRI: 83.3%) platforms • Summary – Targeting new reserves in the Lentic 1 sand by drilling a side-track from the existing A-2 well bore • Initial Est. Cost - $13.6 million • Target well depth – ~8,500’ TVD • Target spud date – October 2013 • Target IP – 850 Boepd • Unrisked potential – 1.1 MMBoe W&T Offshore lease blocks • Project NPV ~ $35 MM East Cameron 321 field is situated 97 miles off the coast of Louisiana in 225’ of water. Cumulative production through December of 2012 was 93.6 MMBoe. 15