Wt Offshore Inc (WTI) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2010

NEWS RELEASE

Total proved reserve replacement was 231%. Proved reserves increased 31% from 371.0 Bcfe to 485.4 Bcfe. Oil and natural gas liquids comprise 47% of total proved reserves. Year-end 2010 proved developed reserves increased to 81% of total proved reserves from 76% in 2009. Our PV-10 increased 68% over year-end 2009.

During the fourth quarter, we acquired three deepwater properties from Shell Offshore Inc. at a cost of $10.49 per barrel equivalent or $1.75 per Mcfe for proved reserves.

For the full year 2010, net income increased by $305.8 million to $117.9 million from a net loss of ($187.9) million in 2009. Earnings per share increased $4.09 per share to $1.58 per share in 2010 from a loss in 2009 of ($2.51) per share. Earnings for the year 2010, adjusted to exclude special items, were $1.57 per share compared to a loss of ($1.10) in 2009.

Cash flow from operating activities for the full year 2010 increased $308.5 million, or 197%, to $464.8 million compared to $156.3 million in 2009. Adjusted EBITDA increased by $108.8 million to $450.2 million in 2010 compared to $341.4 million in 2009 and Adjusted EBITDA margin increased to 64% in 2010 compared to 56% in 2009.