Contango Comments on DOI 60-Day Suspension of Leasing and Permitting on Federal Lands and Provides Update on Silvertip Acquis...
January 25 2021 - 6:24PM
Contango Oil & Gas Company (NYSE American: MCF)
(“Contango” or the “Company”) today provided commentary on the US
Department of Interior’s 60-day suspension of authority for federal
permitting, leasing, or other fossil fuel authorizations.
Contango does not expect any negative impact on
its legacy production or production from either of the recently
announced MCEP and Silvertip acquisitions, or on permitting in any
of its onshore areas. To the extent Contango has plans to restore
shut in production, convert producing wells to injection wells for
enhanced oil recovery, or conduct routine well interventions to
optimize production, it does not anticipate the suspension will
have any effect on those operations.
Wilkie S. Colyer, Jr., Contango’s Chief
Executive Officer, commented, “Our business model, which is focused
on acquisition and management of cash-flowing, longer-lived assets
at attractive prices, is not expected to be impacted by the
Department of Interior’s suspension of authority. Federal acreage
within our asset base is comprised largely of developed reserves,
thereby mitigating any impact the temporary suspension, or any
increased regulation on the leasing and permitting process on
federal lands, might have on our operations. Any increased
regulation on drilling could ultimately be beneficial to companies
with PDP-heavy profiles to the extent that it leads to higher
future commodity prices. Lastly, we are excited for the closing of
the Silvertip acquisition on February 1 and look forward to
welcoming the employees of Silvertip to Contango.”
About Contango
Contango Oil & Gas Company is a Fort
Worth, Texas based, 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 Oklahoma, Texas, Wyoming and Louisiana and, when
determined appropriate, to use that cash flow to explore, develop,
and increase production from its existing properties, to acquire
additional PDP-heavy crude oil and natural gas properties or to pay
down debt. Additional information is available on the Company’s
website at http://contango.com. Information on our website is not
part of this release.
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, increased governmental
regulation, 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
OfficerSource: Contango Oil & Gas Company
Contango Oil and Gas (AMEX:MCF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Contango Oil and Gas (AMEX:MCF)
Historical Stock Chart
From Apr 2023 to Apr 2024