In W&T and other initial members formed and initially funded Monza, which jointly participates with us in the exploration, drilling and development of certain drilling projects (the “Joint Venture Drilling Program”) in the Gulf of Mexico.  Subsequent to the initial closing, additional investors joined as members of Monza during and total commitments by all members, including W&T's commitment outside of Monza, are million.  Through wells have been completed of which were producing as of W&T contributed of its working interest in certain identified undeveloped drilling projects to Monza and retained of its working interest.  The Joint Venture Drilling Program is structured so that we initially receive an aggregate of of the revenues less expenses, through both our direct ownership of our working interest in the projects and our indirect interest through our interest in Monza, for contributing of the estimated total well costs plus associated leases and providing access to available infrastructure at agreed-upon rates.  Any exceptions to this structure are approved by the Monza board.  W&T is the operator for of the wells completed through

 

The members of Monza are made up of -party investors, W&T and an entity owned and controlled by Mr. Tracy W. Krohn, our Chairman and Chief Executive Officer.  The Krohn entity invested as a minority investor on the same terms and conditions as the -party investors, and its investment is limited to of total invested capital within Monza.  The entity affiliated with Mr. Krohn has made a capital commitment to Monza of million.

 

Monza is an entity separate from any other entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of Monza’s assets prior to any value in Monza becoming available to holders of its equity.  The assets of Monza are available to pay creditors of the Company and its affiliates.

 

Through members of Monza made partner capital contributions, including our contributions of working interest in the drilling projects, to Monza totaling  million and received cash distributions totaling million.  Our net contribution to Monza, reduced by distributions received, as of was  million.  W&T is obligated to fund certain cost overruns to the extent they occur, subject to certain exceptions, for the Joint Venture Drilling Program wells above budgeted and contingency amounts, of which the total exposure cannot be estimated at this time.

 

 

Our interest in Monza is considered to be a variable interest that we account for using proportional consolidation.  Additionally, during and we called on Monza to provide cash to fund its portion of certain Joint Venture Drilling Program projects in advance of capital expenditure spending, and the unused balances as of and were  million and million, respectively, which are included in the Consolidated Balance Sheet in .