Post-Macondo and What the Likely Ultimate Outcome Will Be in the Gulf of Mexico

1. Go immediately to Company Highlights PageGo immediately to Company Highlights Page

2. Introduction – W&T Offshore Operating in the Gulf of Mexico for 27 years IPO in January 2005 Large acreage position in the Gulf of Mexico 846,975 gross / 548,841 net acres as of 12/31/10 82% of total gross acreage is held-by-production Strong cash flow & good liquidity Focused on safety, growth and profitability with environmentally responsible operations Pursuing conventional onshore opportunities in addition to Gulf of Mexico focus

3. 2 Company Highlights Good Afternoon. We appreciate you joining us for this presentation. As you can see here, we are providing some basic statistics on W&T - including our results for 2010 and our full-year 2011 guidance. [Go to page 2]Good Afternoon. We appreciate you joining us for this presentation. As you can see here, we are providing some basic statistics on W&T - including our results for 2010 and our full-year 2011 guidance. [Go to page 2]

4. 3 Our Gulf of Mexico Operations

5. 4 Why We Like the Gulf of Mexico Great history of production and reserves Highly prolific with multiple pay zones Reserves at deeper but virtually untapped zones, significant upside potential Established infrastructure on shelf Substantial percentage of oil reserves Reserve to production profile is consistent Attractive reservoir characteristics High porosity rock provides quick return on investment Cash flow velocity significantly higher than most other basins Balanced growth opportunities (high impact or low risk)

6. 5 The Importance of Offshore Drilling to National Energy Policy Offshore wells comprise 32% of current U.S. oil production Gulf of Mexico wells contributes 94% of U.S. offshore oil production The U.S. outer continental shelf contains an estimated 85 billion barrels of oil in technically recoverable reserves – more than all onshore resources and those in shallower state waters combined The U.S. relies on oil imports for 52% of domestic needs, versus 42% in 1990 Domestic consumption of oil has exceeded domestic production since the late 1940’s Offshore GOM oil and gas industry generated almost $70 billion of economic value and nearly 400,000 jobs in 2009 The U.S. government receives a significant portion of oil and gas royalty revenues from offshore production Annual revenues from federal onshore and offshore (OCS) mineral leases are one of the federal government’s largest sources of non-tax income In 2007, the most recent year for which a complete annual report is available, offshore production generated approximately 70% of the $9.2 billion in oil and gas royalty revenues

7. Offshore Leases (1) Of the 37.9 million acres of active leases in the offshore U.S., 90% are in the Gulf of Mexico Of the 33.9 million acres of active leases in the GOM, only 18% are producing

8. Economic Contribution of the Independents in the Gulf of Mexico In July 2010, Cobalt International Energy, Inc. commissioned IHS Global Insight to undertake an independent study that measures the total economic impact of the independents operating in the GOM The study showed the following effects in 2015 of independents leaving the GOM: Approximately 290,000 jobs would be lost in the four-state Gulf region of Alabama, Louisiana, Mississippi and Texas The federal government would lose $10.13 billion in taxes and royalty revenues The four-state Gulf region would lose $4.59 billion in state and local tax revenues Altogether, over a 10-year period starting 2010, $147 billion federal, state and local revenues would be lost if independents are excluded from the GOM Of this amount, $106 billion are related to the deepwater GOM At the time of the IHS study, independents were the largest shareholder in 66% of the leases in the entire GOM and 81% of the producing leases In the deepwater GOM, independents were the largest shareholder in 52% of all leases and in 46% of the producing leases

9. Current Status of Permits (1)

10. Current Status of Plans (1)

11. Regulatory Developments -- Deepwater Ten drilling permits approved since such work was halted after last year’s spill First deepwater drilling permit awarded to Noble on 2/28/11 Eight drilling permits on projects with updated regulations on pre-Gulf spill projects Two permits under the updated regulations for new exploratory projects Shell (3/30/11) and Statoil (4/8/11) were the recipients of these permits Interim final rule (October 14, 2010) Independent verification of BOP capabilities PE certification of casing and cementing design Additional BOP testing, inspection and maintenance Well control options – Operators to show how they would respond to subsea well control issue. Helix Well Containment Group (HWCG) Marine Well Containment Company (MWCC) Total Deepwater Solution (TDWS) W&T has executed a contract with HWCG The first 3 approved deepwater drilling permit were members of the HWCG

12. W&T Permitting Success Since Macondo

13. Regulatory – Drilling Activity

14. Oil & Gas Industry Shows Culture of Safety NOTES: -Per 200 Mill working Hours. NOTES: -Per 200 Mill working Hours.

15. Oil & Gas Extraction Among Safest Industries NOTES: -Per 200 Mill working Hours.NOTES: -Per 200 Mill working Hours.

16. In Summary What happened after Valdez? More Regulation More Insurance (OPA coverage) More Taxation (Oil Spill Liability Trust Fund – funded after Valdez; initially at $1 billion and increased to $2.7 billion in 2005) What will most likely happen Post-Macondo? More Regulation (Already happened) More Insurance (Increase in OPA Coverage) More Taxation (Likely increase to the Oil Spill Liability Trust Fund)