W&T have established a 2018 capital program of $130.0 million that includes 12 wells to be drilled (four of which were started in 2017, one of which has been abandoned as a dry hole), of which seven are deepwater wells and five are shelf wells. Six of the deepwater wells and four of the shelf wells are exploratory. The budget also includes 12 recompletes that are expected to cost approximately $7.5 million. Approximately $35 million of the budget is related to projects that commenced in 2017 with the remainder dedicated to new projects in 2018. Additionally, we estimate we will spend approximately $24 million on plugging and abandonment activities in 2018. 

We expect that this budget may result in a slight decrease in our 2018 production compared to 2017. Our estimates of production for 2018 are a function of the timing of the expenditures and the success of the wells and our other work programs.  Our estimates do not yet reflect the full impact of our proposed drilling joint venture.  Nor do these estimates reflect what we believe are viable acquisition opportunities that can increase both production and reserves.  We continue to evaluate these opportunities and are confident that we can execute on them as they arise.

Projects included in the 2018 capital spending plan that are already under way include the completion of Ship Shoal 349 (Mahogany) A-17, a well that has found two new objectives in two new sands; development of the Main Pass 286 #1, a successful 2017 exploration well; and Viosca Knoll 823 (Virgo) A-10 ST, a deepwater development well that is up-dip to known pay. 

New projects in our 2018 capital program include two more wells at the Mahogany field, the SS 349 A-5 ST2, a low-cost side track well targeting the "P" sand; and the SS 359 A-20, an exploration/exploitation well.  Two wells are also planned at Ewing Bank 910 field, the ST 311 A-2 and A-3 wells, both of which are low-risk, high-return exploration opportunities with multiple stacked pay sands.  If successful, all of these wells can be brought on line quickly via existing infrastructure and pipelines.  Additionally, we expect the recompletions that are planned will provide low-cost production additions.

Virtually all of these projects meet our objectives of having a very high probability of success, expected high rates of return and short-term payout, and the ability to boost production levels in 2018 or early 2019.