Cash consideration:

Evaluated properties including equipment

$

73,007

Unevaluated properties

9,248

Sub-total cash consideration

82,255

Non-cash consideration:

Asset retirement obligations - current

90

Asset retirement obligations - non-current

4,143

Sub-total non-cash consideration

4,233

Total consideration

$

86,488

Three Months Ended

March 31, 2013

Revenues (a)

$

11,353

Direct operating expenses (a)

2,206

DD&A (b)

4,205

Interest expense (c)

411

Capitalized interest (d)

(84

)

Income taxes expense (e)

1,615

(a)

Revenues and direct operating expenses for the Callon Properties were derived from the historical financial records of Callon.

(b)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon Properties’ costs, reserves and production into our full cost pool in order to compute such amounts.  The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation.  ARO was estimated by W&T management.

(c)

The acquisition was assumed to be funded entirely with borrowed funds.  Interest expense was computed using assumed borrowings of $82.3 million, which equates to the cash component of the transaction, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.

(d)

The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings.  The negative amount represents a decrease to net expenses.

(e)

Income tax expense was computed using the 35% federal statutory rate.