Cash consideration:

Evaluated properties including equipment

$

50,703

Unevaluated properties

2,660

Sub-total cash consideration

53,363

Non-cash consideration:

Asset retirement obligations - current

782

Asset retirement obligations - non-current

10,543

Sub-total non-cash consideration

11,325

Total consideration

$

64,688

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

2013

2014

2013

Revenues (a)

$

9,028

$

15,978

$

22,887

$

33,686

Direct operating expenses (a)

1,805

2,591

4,417

4,990

DD&A (b)

3,305

4,917

8,218

10,204

G&A (c)

200

200

400

400

Interest expense (d)

80

240

320

480

Capitalized interest (e)

(6

)

20

(22

)

(13

)

Income taxes expense (f)

1,275

2,804

3,344

6,169

(a)

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

(b)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside 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)

Estimated insurance costs related to the Woodside Properties.

(d)

The acquisition was assumed to be funded entirely with borrowed funds.  Interest expense was computed using assumed borrowings of $53.4 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.

(e)

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.

(f)

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

Cash consideration:

Evaluated properties including equipment

$

73,752

Unevaluated properties

9,248

Sub-total cash consideration

83,000

Non-cash consideration:

Asset retirement obligations - current

90

Asset retirement obligations - non-current

4,143

Sub-total non-cash consideration

4,233

Total consideration

$

87,233

Three Months Ended

Six Months Ended

June 30, 2013

June 30, 2013

Revenues (a)

$

8,457

$

19,810

Direct operating expenses (a)

1,886

3,930

DD&A (b)

3,714

7,945

Interest expense (c)

415

830

Capitalized interest (d)

(56

)

(138

)

Income taxes expense (e)

874

2,535

(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 $83.0 million, which equates to the cash component of the acquisition purchase price, 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.