Profile: Contango Oil & Gas Co (MCF.A)
27 Mar 2015
Contango Oil & Gas Company (Contago), incorporated on November 8, 2000, is an oil and natural gas company. The Company is engaged in the acquisition, exploration, development, exploitation and production of crude oil and natural gas offshore in the shallow waters of the Gulf of Mexico and in the onshore Gulf Coast region of the United States and Colorado. The Company has a wholly owned subsidiary, Crimson Exploration Inc. Additionally, it had a 37% equity investment in Exaro Energy III LLC (Exaro), which participates in a joint venture with Encana Oil & Gas (USA) Inc. (Encana) that is focused on the development of proved natural gas reserves in the Jonah Field in Wyoming; an approximate 29,000 net acre position, and non-operated producing properties, in Louisiana and Mississippi targeting the Tuscaloosa Marine Shale (TMS).
Offshore Gulf of Mexico
As of December 31, 2013, the Company's offshore production consisted of seven federal and five State of Louisiana Company-operated wells in the shallow waters of the Gulf of Mexico. These 12 wells produce from three fields. Dutch and Mary Rose Field operate five federal wells located at Eugene Island 10 (Dutch), and five state wells located in adjacent state of Louisiana waters (Mary Rose). These 10 wells produce to a Company-owned and operated production platform at Eugene Island 11. Vermilion 170 Field operate one well at Vermilion 170 which flows to a Company-owned and operated production platform at the same location. Based on current production and decline rates, it has determined the need to place Vermilion 170 well on compression in 2014, at a cost of $1.4 million, net to the Company.
The Company’s Ship Shoal 263 and South Timbalier 17 fields have been included in Offshore. The Company operates one well at Ship Shoal 263, which produces to a Company-owned and operated production platform at the same location. This well reached payout in 2012. As a result, the net book value of Ship Shoal 263 well exceeded the future undiscounted cash flows associated with its reserves. On July 30, 2013, it spud South Timbalier 17 prospect in state of Louisiana offshore waters, and on August 22, 2013 it announced a well. The well was drilled to a total measured depth of approximately 11,400 feet and the wireline logs of the well indicate the presence of hydrocarbons.
As of December 31, 2013, Southeast Texas region included approximately 42,580 gross (26,476 net) acres, proven reserves of 52.3 Bcfe, and 79 gross (44.3 net) producing wells. Crimson has actively developed this area since 2008, focusing on conventional wells in the Yegua and Cook Mountain sands in Liberty County until 2012. As of December 31, 2013, South Texas region included approximately 105,364 gross (55,885 net) acres, reserves of 63.3 Bcfe, and 274 gross (144.7 net) producing wells. Of this, approximately 25,880 gross (13,978 net) acres are targeting the Buda and Eagle Ford Shale plays, approximately 80% of which is held by production. As of December 31, 2013, East Texas region included approximately 7,904 gross (4,833 net) acres primarily in San Augustine County, proven reserves of 1.5 billions of cubic feet equivalent comprised of 99% gas, and eight gross (3.9 net) producing wells. Crimson actively developed the Haynesville and Mid-Bossier Shales in this area in 2009 through 2011 during a more favorable natural gas price environment. It owns a 25% non-operated working interest in the Crosby 12H-1 well in Wilkinson County, Mississippi, targeting the TMS, an oil-focused shale play in central Louisiana and Mississippi. This well is operated by Goodrich Petroleum Company LLC (Goodrich). It holds approximately 16,080 gross (11,229 net) acres in the DJ Basin in Colorado (mostly in Adams and Weld counties).
Contango Oil & Gas Co
717 Texas St Ste 2900
HOUSTON TX 77002-2836