The Fairway Field is located in the shallow waters south of Mobile Bay in the US state of Alabama, while the Yellowhammer plant is located onshore Alabama about 17 miles northwest of the Fairway Field.
Current production, net to W&T’s stake in the Fairway Field, is about 19.5mmcf of natural gas per day and 1,200 barrels of natural gas liquids per day or about 26.9mmcfe per day.
This acquisition was part of a larger transaction between the companies for three deepwater producing fields namely Tahoe, SE Tahoe and Droshky in the Gulf of Mexico.
At closing, the adjusted purchase price paid for the Fairway Field and the Yellowhammer facility was about $36.7m.
The purchase price is subject to further post-effective date adjustments and assumption of asset retirement obligations associated with these properties.
