W&T Offshore has successfully operated in the Gulf of Mexico since 1985 and, over the last 10 years, has achieved an offshore exploration drilling success rate of 74% and a development drilling success rate of well over 95%.  We are the operator for a substantial majority of our offshore production, which is made up of approximately 54% oil and natural gas liquids and 46% natural gas.  W&T Offshore holds working interests in 66 offshore fields (62 producing and four capable of producing) in federal and state waters and we have approximately 1.2 million gross acres under lease.  Currently, almost half of those acres are in the deep water where we have an active drilling program under way, primarily through joint ventures with other operators.

The reservoirs in our offshore fields are generally characterized as having high porosity and permeability, which typically result in high production rates.  Approximately 60% of our total gross acreage offshore is held by production, which permits us to maintain rights to the leased area  as long as production continues.