Contango and Partners Sell 20,000 Acres for $236 Million
Contango Oil & Gas Company has entered into a definitive agreement with XTO Energy Inc. to sell the remaining Eastern core of its Arkansas Fayetteville Shale properties (approximately 11,200 acres, net to Contango) for approximately $128 million, net to Contango's 56% interest. Together, in this transaction, Contango and its partners have agreed to sell approximately 20,000 acres for approximately $236 million. The sale is expected to close in January 2008 and is subject to customary closing conditions and adjustments.
The sale is part of the Company's previously announced review of strategic alternatives to enhance shareholder value. The sale will be effective December 1, 2007. Merrill Lynch & Co. acted as marketing and financial advisor to Contango and its partners in connection with the sale.
Kenneth R. Peak, the Company's Chairman and Chief Executive Officer, said, "Contango will once again seek to use the proceeds from this sale, assuming successful completion, to finance the purchase of producing properties utilizing a like-kind exchange structure. The combined sales proceeds for our Eastern and Western Fayetteville Shale assets were approximately $328 million."
- One Killed, 3 Hurt in North Dakota Well Explosion -AP (Jun 20)
- Exxon Said to Be on the Hunt for West Texas Shale Bargains (Sep 18)
- ExxonMobil Selling Cook Inlet Assets, Remains Committed to Alaska (Jul 07)
Company: Contango Oil & Gas more info
- Contango, Crimson Exploration Pen Merger Agreement (Apr 30)
- Contango Mourns Loss of Founder (Apr 22)
- Contango Spotlights Year-End Results (Aug 29)