The Company spudded its Mary Rose #1 well today, located on State of Louisiana Lease No. 18640, and expects its Dutch #2 well to begin production next week, which when combined with our Dutch #1 well, will bring our Dutch production to approximately 70 Mmcfe/d, or approximately 21 Mmcfe/d net to Contango. Current net production to Contango from our Fayetteville Shale is approximately 8.7 Mmcfe/d, thus Contango's net production will be approximately 30 Mmcfe/d.
Kenneth R. Peak, Contango's Chairman and Chief Executive Officer, said, "Our monthly cash flow is expected to continue to grow in quantum steps as we ramp up production from our future Dutch and Mary Rose wells. We expect that our Mary Rose #1 well will be at least as productive as our Dutch #3 well. In addition, we are now less than a year away from first revenues and cash flow from our Freeport LNG investment. We currently have approximately $4 million in cash and $30 million of unutilized debt capacity."
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