EXHIBIT 99.1

W&T OFFSHORE REPORTS FOURTH QUARTER AND FULL

YEAR 2006 FINANCIAL AND OPERATIONAL RESULTS

HOUSTON — March 8, 2007 — W&T Offshore, Inc. (NYSE: WTI) today announces record production and provides financial and operational results for the fourth quarter and full year 2006. Some of the highlights include:

Tracy W. Krohn, Chairman and Chief Executive Officer, stated, “2006 included several records or firsts. We completed our largest transaction to date, our $1.1 billion Kerr-McGee transaction in August. We completed our first follow-on equity offering in July. Revenues, production, cash flow, and reserves were all new record highs. While our revenue was at record highs, unfortunately so were our expenses. During 2006, DD&A increased over 80%, which had an impact on earnings per share. I am pleased to note we added 109 Bcfe through the drillbit and extensions, which replaced our production of 99 Bcfe. While the Kerr-McGee acquisition has put some pressure on our earnings per share, I remain very pleased with the potential for value creation arising out of that acquisition.”

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Net Income: Net income for the three months ended December 31, 2006 was $38.1 million, or $0.50 per diluted share, on revenue of $264.4 million. Net income for the fourth quarter of 2006 includes an unrealized loss of $1.1 million (after taxes) related to W&T’s commodity derivative contracts. For the fourth quarter of 2005 net income was $50.9 million, or $0.77 per diluted share, on revenues of $152.9 million. Net income declined in the fourth quarter 2006 principally due to overall higher drilling costs, increased charges for DD&A, service costs, interest expense and insurance premiums. Net income for the year ended December 31, 2006 was $199.1 million, or $2.84 per diluted share, on revenues of $800.5 million, compared to net income of $189.0 million or $2.87 per diluted share, on revenues of $585.1 million for 2005. Included in full year 2006 results are realized and unrealized commodity gains of $10.8 million and $13.4 million, respectively.

Lease Operating Expenses (“LOE”): LOE for the fourth quarter of 2006 increased to $43.2 million, or $1.20 per thousand cubic feet equivalent (“Mcfe”) from $19.5 million, or $1.43 per Mcfe in the fourth quarter of 2005. LOE for the year ended December 31, 2006 was $109.7 million, or $1.11 per Mcfe, compared to $71.8 million, or $1.01 per Mcfe in 2005. The increases in quarterly and year-to-date LOE are primarily attributable to higher costs associated with the properties acquired in the Kerr-McGee transaction completed in August 2006, increases in insurance premiums as a result of last year’s hurricanes, and an overall increase in service and supply costs at existing properties. The unit costs are being negatively affected in 2005 by the deferred production as a result of the hurricanes and positively affected in 2006 by the Kerr-McGee transaction.

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Depreciation, depletion, amortization and accretion (“DD&A”): DD&A increased to $135.7 million, or $3.79 per Mcfe, in the fourth quarter of 2006 from $45.0 million, or $3.30 per Mcfe, in the same period of 2005. At the same time, property subject to DD&A increased to $2.7 billion from $1.2 billion in the prior period. DD&A for the year ended 2006 was $337.6 million or $3.40 per Mcfe, compared to DD&A of $183.8 million, or $2.59 per Mcfe, for the same period in 2005. Per unit DD&A increased in part due to increases in total depletable costs due to the Kerr-McGee merger transaction, increased capital spending, higher drilling and service costs, and higher estimated future development costs.

Cash Flow from Operations and Adjusted EBITDA: Net cash provided by operating activities increased 120% to $220.1 million during the fourth quarter from $100.2 million during the prior year’s fourth quarter. Fourth quarter 2006 Adjusted EBITDA was $207.7 million, compared to $121.6 million during the prior year’s fourth quarter. Net cash provided by operating activities for 2006 increased 28.7% to $571.6 million from $444.0 million in 2005. Adjusted EBITDA was $641.8 million for the year ended December 31, 2006, compared to $472.3 million for the prior year period. Cash flow was significantly higher in 2006 due to continued successful exploration efforts and due to the addition of the Kerr-McGee properties. For more complete information regarding EBITDA and Adjusted EBITDA please see “Additional Non-GAAP Information” later in this press release.

Production and Prices: Total production in the fourth quarter of 2006 was 23.0 billion cubic feet (“Bcf”) of natural gas that was sold at an average price of $6.64 per Mcf and 2.1 million barrels (“MMBbls”) of oil that was sold at an average price of $52.13 per barrel (“Bbl”). On a natural gas equivalent (“Bcfe”) basis, the Company sold 35.8 Bcfe at an average price of $7.38 per Mcfe. For the fourth quarter of 2005 the Company sold production of 9.4 Bcf of natural gas at an average price of $12.06 per Mcf and 0.7 MMBbls of oil at an average price of $55.87 per Bbl. On a Bcfe basis, the Company sold 13.6 Bcfe at an average price of $11.20 per Mcfe. The increase in volumes is primarily attributable to the additional production associated with the newly acquired Kerr-McGee properties, and new production from successful exploration drilling, while the 2005 production is lower due to production shut-in as a result of the hurricanes.

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For the year ended December 31, 2006, total production was 60.4 Bcf of natural gas at an average price of $7.08 per Mcf and 6.5 MMBbls of oil at an average price of $57.70 per Bbl. On a Mcfe basis, the Company sold 99.2 Bcfe at an average price of $8.07 per Mcfe. For the year 2005, the Company sold 46.5 Bcf of natural gas at an average price of $8.27 per Mcf and 4.1 MMBbls of oil at an average price of $48.85 per Bbl. On a Mcfe basis, the Company sold 71.1 Bcfe at an average price of $8.23 per Mcfe for the same period in 2005.

Capital Expenditures and Operations Update: During the fourth quarter of 2006, the Company participated in the drilling of four exploration wells (gross) in the Gulf of Mexico, one of which was successful. For the year ended December 31, 2006, capital expenditures of $1.7 billion included $1.1 billion for the acquisition of properties from Kerr-McGee, $301.6 million for development activities, $252.0 million for exploration, $35.4 million for seismic and other leasehold costs and $4.8 million for other capital items.

Drilling Highlights: In the fourth quarter of 2006, the Company participated in the drilling of four exploration wells. Two of the wells were in deepwater and two were on the conventional shelf.

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Insurance Update: As of December 31, 2006, insurance receivables were $75 million. On Tuesday, March 6, 2007, the Company completed written settlement agreements with its insurance underwriters to settle all claims related to Hurricanes Katrina and Rita and Green Canyon 82 for $105 million. After adjustments for applicable deductibles and $21 million already collected in 2006 and $4.8 million collected in February 2007, the Company will receive net proceeds of $73.3 million, currently expected for the middle of March 2007. This amount exceeds total hurricane related receivables through December 31, 2006, by $2.9 million with the excess being used to offset hurricane remediation efforts that continue into 2007.

The Company estimates spending between $15 million to $20 million for hurricane remediation in 2007. The timing of future repairs will be affected by equipment availability, design and remediation planning and permitting. This estimate will be updated as the remediation progresses. Future Lease Operating Expense (LOE) guidance will include normal recurring LOE and LOE related to hurricane remediation.

Reserves: In 2006, W&T replaced 346% of its production. As of December 31, 2006, proved reserves were 735.2 Bcfe compared to proved reserves of 491.5 Bcfe as of December 31, 2005. Year-end 2006 proved reserves consist of 401.2 Bcf of natural gas (55% of proved reserves) and 55.7 million barrels, or 334.0 Bcfe of oil and liquids (45% of proved reserves). The present value of the proved reserves discounted at 10%, including estimated asset retirement obligations, and without deducting any future income taxes, is $2.3 billion based on year-end prices of $5.635 per MMBtu ($5.40 per Mcf) of natural gas and $52.79 per Bbl of oil. The Company’s estimate of proved reserves are based on a reserve report prepared by Netherland, Sewell & Associates, Inc., the Company’s independent petroleum consultant.

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The Company’s proved reserves are summarized in the table below.

2006 Reserve Reconciliation:

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Outlook: The following information does not include the potential impact of any future acquisitions or divestitures that may be completed after the date of this news release. The guidance for 2007 represents the Company’s best estimate of likely future results, and is affected by the factors described below in “Forward-Looking Statements.”

Guidance for the first quarter and full year 2007 is shown in the table below. We are reducing the low end of first quarter guidance due to several project startup delays resulting from weather conditions, equipment availability, the unanticipated damage to the High Island Pipeline System (HIPS) that occurred December 2006. Guidance for full year 2007 is not being changed.

2007 Production and Cost Guidance:

Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Thursday, March 8, 2007 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate, dial (303) 262-2131 a few minutes before the call begins. The call will also be broadcast live over the Internet from the Company’s website at www.wtoffshore.com. A replay of the conference call will be available approximately two hours after the end of the call until Thursday, March 15, 2007, and may be accessed by calling (303) 590-3000 and using the pass code 11085913.

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About W&T Offshore

Founded in 1983, W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 200 fields in federal and state waters and a majority of its daily production is derived from wells it operates. For more information on W&T Offshore, please visit its Web site at www.wtoffshore.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2005 (www.sec.gov).

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Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

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Operating Data

(Unaudited)

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Consolidated Balance Sheets

(In thousands)

(Unaudited)

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Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

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Additional Non-GAAP Information

Certain financial information included in our financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are “Adjusted Net Income”, “EBITDA”, and “Adjusted EBITDA”. Our management uses these non-GAAP measures in its analysis of our performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net Income to Adjusted Net Income

“Adjusted Net Income” does not include the unrealized derivative gain and associated tax effects. Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and period to prior periods.

Reconciliation of Net Income to EBITDA

EBITDA is defined as net income plus income tax expense, net interest (income) expense, depreciation, depletion, amortization and accretion and non-cash expenses associated with unrealized changes in the fair market value of open derivative contracts. Although not prescribed under GAAP, we believe the presentation of EBITDA is relevant and useful because it helps our investors understand our operating performance and makes it easier to compare our results with those of other companies that have different financing, capital or tax structures. EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA measures reported by other companies. In addition, EBITDA does not represent funds available for discretionary use. “Adjusted EBITDA” excludes certain non-cash items that management believes affect the comparability of operating results, including the unrealized gain or loss related to open derivative contracts.

The following table presents a reconciliation of our consolidated net income to consolidated EBITDA.

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