W&T offloads Yellow Rose field
HOUSTON, September 2, 2015 – In a deal worth $376.1 million, US company W&T Offshore will sell its Yellow Rose field in western Texas to Ajax Resources, a newly-founded private corporation. The deal represents W&T’s exit from the onshore market.
The Yellow Rose project includes around 25,800 net acres (104 square kilometres) of property in the Permian Basin. Together the wells produce about 3,000 barrels of oil equivalent per day.
“This sale will allow us to strengthen our balance sheet and improve our financial flexibility to pursue the acquisition of Gulf of Mexico assets while valuations are favorable,” W&T CEO Tracy Krohn said in a statement. “We believe that current conditions are good for W&T to identify quality offshore producing assets that offer upside exploration and development opportunity.”
W&T plans to use part of the sale money for an acquisitions fund, and part of it to pay off its debts. Its current holdings include a million gross offshore acres.