W&T Offshore said it will pay $450 million in cash to Shell and it will assume approximately $50 million in asset retirement obligations associated with the properties.
The interests acquired by W&T are in the Tahoe, SE Tahoe, Marlin, Dorado and Droshky fields located in the deepwater of the Gulf of Mexico.
The sixth field, which is subject to a letter of intent with Shell, is a Gulf of Mexico producing shelf property along with associated assets, W&T said.
Combined production, net to Shell's interest, in the six fields is currently approximately 6,840 barrels of oil per day and 68.8 million cubic feet of natural gas per day, W&T said in a statement.
"With the production from these assets currently weighted about 37% towards oil on a volume equivalent basis, we can benefit from today's high oil prices, while the reserves are predominately natural gas which should provide longer term upside," W&T Chairman and CEO Tracy Krohn said in a statement.
-- Written by Robert Holmes in Boston
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