--  Production increased 16% to 24.8 Bcfe from 21.4 Bcfe in the first       quarter of 2009   --  Oil and natural gas liquids increased 29% to 1.9 MMbbls from 1.5       MMbbls in the first quarter of 2009 and represented 46% of second       quarter production.   --  Adjusted EBITDA increased 42% to $79.8 million from $56.2 million in       the first quarter of 2009    --  67% success in the drilling program, successfully drilling four out of       six wells, including one successful deep shelf development well    

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "As a result of the continuing strength in oil prices, the successful cost reduction efforts put in place by the Company, increased production due to our drilling program and pipelines returning to production post Hurricane Ike, the Company returned to profitability in June. I am extremely optimistic that our cash flows from operations will be increasing for the remainder of the year."

"As we have now completed most of our drilling projects for the year and continue to look at our best use of capital in the second half of 2009, we will focus on building cash for strategic opportunities, including acquisitions and attractive third party projects. We believe that over the next 12 to 18 months, sellers and buyers will be increasingly more willing to complete transactions at valuations that are attractive to us," added Mr. Krohn.

Revenues, Net Income/Loss and EPS: Net loss for the second quarter of 2009 was $6.0 million, or $0.08 per common share, on revenues of $150.4 million, compared to net income for the same quarter of 2008 of $134.6 million, or $1.76 per share, on revenues of $461.0 million. Net loss for the six months ended June 30, 2009 was $236.7 million, or $3.14 per common share, on revenues of $267.9 million, compared to net income of $214.4 million, or $2.81 per share, on revenues of $817.5 million for the first six months of 2008. The six months ended June 30, 2009 includes a $205 million ceiling test impairment, which was recorded in the first quarter of 2009. The adjusted net loss for the six month period is $57.0 million, or $0.76 per share.

Net loss for the second quarter of 2009 reflects the impact of a $1.0 million benefit from the change in fair value of our interest rate swap ($0.4 million after-tax) and $2.9 million loss from extinguishment of debt ($1.1 million after-tax). Without the effect of the unrealized derivative gain and loss from extinguishment of debt, net loss for the second quarter of 2009 would have been $5.3 million, or $0.07 per common share. Net income for the second quarter of 2008 included an unrealized derivative loss of $10.2 million ($6.7 million after-tax). Without the effect of the unrealized derivative loss, net income for the second quarter of 2008 would have been $141.3 million, or $1.86 per diluted share. See "Non-GAAP Information" later in this press release. The net loss in the second quarter is principally due to a lower average realized price of $6.06 per thousand cubic feet equivalent ("Mcfe"), versus $14.89 per Mcfe (unhedged) in 2008, decreased sales volumes for oil and natural gas related to the deferral of production caused by Hurricanes Gustav and Ike, and natural reservoir declines.

Cash Flow from Operating Activities and Adjusted EBITDA: EBITDA and Adjusted EBITDA are non-GAAP measures and are hereinafter defined in "Non-GAAP Information" later in this press release. Net cash provided by operating activities for the three months ended June 30, 2009 decreased 94% to $17.2 million from $305.6 million for the three months ended June 30, 2008. The decrease was mainly a result of lower realized prices and lower volumes. Second quarter 2009 Adjusted EBITDA was $79.8 million compared to $374.1 million during second quarter 2008, or a 79% decrease. Adjusted EBITDA was $130.9 million for the six months ended June 30, 2009, compared to $653.3 million for the comparable period of 2008.

Production and Prices: We sold 13.4 billion cubic feet ("Bcf") of natural gas at an average realized price of $3.89 per thousand cubic feet ("Mcf") in the second quarter of 2009. We also sold 1.9 million barrels ("MMBbls") of oil and natural gas liquids at an average realized price of $51.61 per barrel ("Bbl") during the same period. For the second quarter of 2008, we sold 17.0 Bcf of natural gas at an average realized price of $11.53 per Mcf and 2.3 MMBbls of oil and natural gas liquids at an average realized price of $113.74 per Bbl. On a natural gas equivalent ("Bcfe") basis, we sold 24.8 Bcfe at an average realized price of $6.06 per Mcfe in the second quarter of 2009 compared to 31.0 Bcfe sold at an average realized price of $14.89 per Mcfe in the second quarter of 2008.

For the six months ended June 30, 2009, our natural gas production totaled 25.9 Bcf and was sold at an average realized price of $4.47 per Mcf while our oil and natural gas liquids production totaled 3.4 MMBbls, which was sold at an average realized price of $44.93 per Bbl. On a combined, basis our production was 46.2 Bcfe sold at an average realized price of $5.79 per Mcfe. For the comparable 2008 period, we produced 34.7 Bcf of natural gas that was sold at an average realized price of $10.09 per Mcf and 4.5 MMBbls of oil and natural gas liquids production sold at an average realized price of $103.46 per Bbl. On a combined, basis our production was 61.8 Bcfe sold at an average realized price of $13.23 per Mcfe.

Lease Operating Expenses: On a nominal basis, LOE for the second quarter of 2009 decreased to $54.1 million, or $2.18 per Mcfe, from $54.3 million, or $1.75 per Mcfe, in the second quarter of 2008. Included in lease operating expenses for the second quarter of 2009 are $5.0 million of hurricane remediation costs related to Hurricanes Ike and Gustav that were either not yet approved by our insurance underwriters or were not covered by insurance. Lease operating expenses will be offset in future periods to the extent these costs are recovered under our insurance policy. LOE on a per Mcfe basis increased primarily due to lower volumes associated with deferred production due to Hurricanes Ike and Gustav and natural reservoir declines.

On a nominal basis, LOE for the six months ended June 30, 2009 remained flat at $104.3 million, or $2.26 per Mcfe, compared to $104.2 million, or $1.69 per Mcfe for the same period in 2008. LOE for the first six months included $15.2 million in hurricane remediation costs. Excluding this, LOE was lower in the 2009 period due to a decrease in base lease operating expenses, fewer workovers and lower facilities expenses.

Depreciation, depletion, amortization and accretion: DD&A decreased to $84.6 million, or $3.41 per Mcfe, in the second quarter of 2009 from $153.8 million, or $4.97 per Mcfe, in the second quarter of 2008. DD&A decreased primarily as a result of a lower depreciable base (due to impairment charges at December 31, 2008 and March 31, 2009 of $1.2 billion and $205 million, respectively), lower production volumes compared to 2008 due in part to the sale of certain assets resulting in a net reduction in our asset retirement obligations. DD&A for the six months ended 2009 was $176.1 million, or $3.81 per Mcfe, compared to DD&A of $299.3 million, or $4.85 per Mcfe, for the same period in 2008.

Liquidity: Our cash balance at June 30, 2009 was $100.7 million and we had $262.4 million of undrawn capacity under our revolving credit facility. During the second quarter we paid off our $205 million Term Loan B with a draw under our revolver. Also during the second quarter we subsequently paid off $63 million of the revolver, leaving us $142.5 million drawn under the facility at June 30, 2009, which matches the notional amount of our interest rate swap. In the second half of 2009, we expect to rebuild our cash position since the vast majority of our capital expenditures were front-end loaded for the year and only approximately $30 million still remains.

Capital Expenditures and Operations Update: For the three months ended June 30, 2009, capital expenditures for oil and natural gas properties of $111.3 million included $44.4 million for exploration activities, $56.0 million for development activities and $10.9 million for seismic, capitalized interest and other leasehold costs. Our development and exploration capital expenditures consisted of $14.0 million in the deepwater, $0.2 million on the deep shelf and $86.2 million on the conventional shelf and other projects.

For the first six months of 2009, our capital expenditures for oil and natural gas properties were $239.7 million, including $80.2 million for exploration activities, $144.2 million for development activities and $15.3 million for seismic, capitalized interest and other leasehold costs. Our development and exploration capital expenditures consisted of $30.8 million in the deepwater, $0.3 million on the deep shelf and $193.3 million on the conventional shelf and other projects. Cash from operating activities and cash on hand financed our capital expenditures for the three and six months ended June 30, 2009.

Drilling Highlights: In the second quarter of 2009, the Company drilled or participated in the drilling of six wells. Of these, five were exploratory shelf wells and one was a deep shelf development well.

   Commercial Wells   Lease Name/Well                  Category           Working Interest %   ---------------                  --------           ------------------   Main Pass 279 A-5ST           Exploration/Shelf              89%   Ship Shoal 349 A-12ST         Development/Deep Shelf        100%   Main Pass 108 E-2             Exploration/Shelf              67%   South Timbalier 315 A-5       Exploration/Shelf             100%    Non-commercial Wells   Lease Name/Well                  Category           Working Interest %   ---------------                  --------           ------------------   South Timbalier 316 A-4       Exploration/Shelf              80%   South Marsh Island 39 B-2ST   Exploration/Shelf              50%   

Outlook: Guidance for the third quarter and full year 2009 is shown in the table below, which represents the Company's best estimate of likely future results, and is affected by the factors described below in "Forward-Looking Statements."

   Third Quarter and Full-Year 2009 Production and Revised Cost Guidance:                                  Third                                 Quarter           Full-Year   Estimated Production            2009              2009    Crude oil (MMBbls)           1.5 - 1.9          6.5 - 8.4   Natural gas (Bcf)           12.1 - 14.4        43.6 - 56.1   Total (Bcfe)                21.1 -25.8         82.8 - 106.4    Operating Expenses        Third           Prior        Revised   ($in millions,           Quarter        Full-Year     Full-Year   except as noted)          2009            2009          2009    Lease operating    expenses               $48 - $59     $205 - $245   $205 - $235   Gathering,    transportation &    production taxes        $4 - $5       $20 - $24      No change   General and    administrative         $10 - $12      $45 - $48      No Change   Income tax rate             0%             9%            14%   

Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Tuesday August 4, 2009 at 11:00 a.m. Eastern Time / 10:00 a.m.