Contango Announces Private Equity Capital Raise
November 30 2020 - 6:35AM
Contango Oil & Gas Company (NYSE American: MCF)
(“Contango” or the “Company”) today announced the execution of an
agreement with a select group of institutional and accredited
investors to sell approximately 14.2 million shares of common stock
in a private placement. The Company expects to receive gross
proceeds from the equity capital raise of approximately $22.0
million, which it intends to use to fund the purchase price of the
Company’s concurrently-announced acquisition of assets in the Big
Horn, Permian, and Powder River Basins from an undisclosed seller,
and general corporate purposes. The closing is expected to occur
on December 1, 2020.
This press release is neither an offer to sell nor a
solicitation of an offer to buy any securities, nor shall there be
any sale of any such securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The shares of common stock to be sold in the
private placement have not been registered under the Securities Act
of 1933, as amended (the “Securities Act”), or under any state
securities laws and, unless so registered may not be offered or
sold in the United States except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of
the Securities Act and applicable state securities laws.
Contango Oil & Gas Company is an independent oil and natural
gas company whose business is to maximize production and cash flow
from its offshore properties in the shallow waters of the Gulf of
Mexico and onshore properties in Texas, Oklahoma, Louisiana and
Wyoming and, when determined appropriate, to use that cash flow to
explore, develop, and acquire oil and natural gas properties across
the United States.
This communication contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on Contango’s current expectations. The
words and phrases “should”, “could”, “may”, “will”, “believe”,
“plan”, “intend”, “expect”, “potential”, “possible”, and similar
expressions identify forward-looking statements and express
Contango’s expectations about future events. All statements, other
than statements of historical facts, included in this communication
that address activities, events or developments that Contango
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond Contango’s control. Consequently, actual future results
could differ materially from Contango’s expectations due to a
number of factors, including, but not limited to market conditions,
industry conditions, the impact of COVID-19 pandemic, the
consummation of the asset acquisition, actions by third parties
(including investors and the seller), and other factors which could
affect Contango’s operations or financial results, including those
described in Contango’s Annual Report on Form 10-K and 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 and
developments may differ materially from the projections in the
forward-looking statements. Forward-looking statements speak only
as of the date they were made and 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, except as required by law.
Contango Oil & Gas CompanyE. Joseph Grady,
713-236-7400Senior Vice President and Chief Financial Officer
Source: Contango Oil & Gas Company
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