Contango Updates Southern Delaware Basin Operations
May 24 2017 - 3:17PM
Contango Oil & Gas Company (NYSE MKT:MCF) (“Contango”)
announced today results on its second and third wells drilled on
its Southern Delaware Basin acreage in Pecos County, Texas.
As previously reported, the Rude Ram #1H and
Ripper State #1H were drilled from a common surface location
approximately one mile south of the Lonestar Gunfighter #1, our
first well in this area. Both wells targeted different landing
zones within the Wolfcamp A and were completed in late April with
initial flowback commencing shortly thereafter. After 30 days
of flowback, the Rude Ram, which targeted the Upper Wolfcamp A,
reached a maximum 24-hour IP rate of 1,304 Boed (69% oil), while
the Ripper State, which targeted the Middle Wolfcamp A,
reached a maximum 24-hour IP rate of 1,131 Boed (73% oil).
These rates compare favorably to the 966 Boed maximum 24-hour
IP rate previously disclosed for the Lonestar Gunfighter well which
targeted the Middle Wolfcamp A.
The Gunner #2H, our fourth horizontal well,
approximately two miles southeast of the Lonestar Gunfighter, has
been drilled to the kickoff point at 9,735 feet and is being
prepared for the drilling of a 10,000 lateral section into the
Lower Wolfcamp A. Contango Oil & Gas Company is a
Houston, Texas based, independent energy company 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 Texas and Rocky Mountain regions
of the United States. Additional information is available on the
Company's website at http://contango.com.
This press release contains forward-looking
statements regarding Contango that are intended to be covered by
the safe harbor "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995, based on
Contango’s current expectations and includes statements regarding
acquisitions and divestitures, estimates of future production,
future results of operations, quality and nature of the asset base,
the assumptions upon which estimates are based and other
expectations, beliefs, plans, objectives, assumptions, strategies
or statements about future events or performance (often, but not
always, using words such as "expects", “projects”, "anticipates",
"plans", "estimates", "potential", "possible", "probable", or
"intends", or stating that certain actions, events or results
"may", "will", "should", or "could" be taken, occur or be
achieved). Statements concerning oil and gas reserves also may be
deemed to be forward looking statements in that they reflect
estimates based on certain assumptions that the resources involved
can be economically exploited. Forward-looking statements are based
on current expectations, estimates and projections that involve a
number of risks and uncertainties, which could cause actual results
to differ materially from those, reflected in the statements. These
risks include, but are not limited to: the risks of the oil and gas
industry (for example, operational risks in exploring for,
developing and producing crude oil and natural gas; risks and
uncertainties involving geology of oil and gas deposits; the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to future production, costs and expenses;
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; health, safety and
environmental risks and risks related to weather such as hurricanes
and other natural disasters); uncertainties as to the availability
and cost of financing; fluctuations in oil and gas prices; risks
associated with derivative positions; inability to realize expected
value from acquisitions, inability of our management team to
execute its plans to meet its goals, shortages of drilling
equipment, oil field personnel and services, unavailability of
gathering systems, pipelines and processing facilities and the
possibility that government policies may change or governmental
approvals may be delayed or withheld. Additional information on
these and other factors which could affect Contango’s operations or
financial results are included in Contango’s other reports on file
with the Securities and Exchange Commission. Investors are
cautioned that any forward-looking statements are not guarantees of
future performance and actual results or developments may differ
materially from the projections in the forward-looking statements.
Forward-looking statements are based on the estimates and opinions
of management at the time the statements are made. Contango does
not assume any obligation to update forward-looking statements
should circumstances or management's estimates or opinions change.
Initial production rates are subject to decline over time and
should not be regarded as reflective of sustained production
levels.
Contact:
Contango Oil & Gas Company
E. Joseph Grady – 713-236-7400
Senior Vice President and Chief Financial Officer
Sergio Castro – 713-236-7400
Vice President and Treasurer