W&T Offshore's Garden Banks 783 drilling pushed into 2026 as rig work is already under way

W&T Offshore (NYSE: WTI), a Gulf of Mexico oil and gas producer, has told investors that development drilling at its Garden Banks 783 field will not happen until 2026. The company said significant money has already been spent on rig and platform modifications there, but the timeline "has been extended to 2026" before a rig can be mobilized. The company has not stated a more precise date within the year.

What is planned

Three undeveloped locations are on the company's schedule, according to its annual report filed on 16 March 2026:

• Garden Banks 783: development drilling in 2026, later than previously planned.
• Viosca Knoll 823: a sidetrack, a new path drilled from an existing well, expected to be developed in 2026.
• Ship Shoal 349: a sidetrack expected in 2038, delayed until an existing well is depleted.

The dates come from the company's latest reserve report. The company has not said what the Garden Banks 783 delay was caused by.

Why it matters

W&T reports 38.7 million barrels of proved oil reserves (P50) at 31 December 2025, with a 100% company interest. Total proved reserves were 121.0 million barrels of oil equivalent, down from 127.0 million a year earlier. The company produced 12.4 million barrels of oil equivalent during 2025, and revisions added 6.5 million.

Most of the reserves are already developed. Proved undeveloped reserves, the volumes that need new drilling, are 6.7 million barrels of oil equivalent, or about 5.5% of the total (6.7 of 121.0). Their PV-10, a standard pre-tax present-value measure, is $41.8 million, against $1,115.3 million for all proved reserves. The company noted the number of undeveloped locations decreased during 2025.

If the 2026 wells succeed, they would convert some of that undeveloped volume into producing reserves. Because the Garden Banks 783 timing has already moved once, further slippage is possible.

What is uncertain

The company cautions that reserve estimates are subjective and may differ from what is ultimately recovered. PV-10 is not a market value. After estimated asset retirement obligations of $333.2 million and taxes, the standardized measure falls to $651.3 million.

Recent results

For the quarter ended 30 June 2026, W&T reported revenue of $162.6 million and net income of $12.6 million. On 11 August, five executives, including CEO Tracy Krohn, exercised stock options and disposed of shares. On 12 August, Goldman Sachs Group reported a 3.40% holding of votes.