HOUSTON–(BUSINESS WIRE)–Contango Oil & Gas Company (NYSE MKT: MCF) announced today that it has completed the sale of all of its non-core onshore Colorado assets to an independent oil and gas company for an aggregate purchase price of $5.0 million. The properties were sold effective December 1, 2016 and consist of the Company’s approximately 16,000 gross (11,200 net) acres primarily in Adams and Weld counties, Colorado and associated producing vertical wells.
The properties sold will not have a material impact on the Company’s production, cash flow or borrowing base. Proved reserves at January 1, 2016 were 4.2 Bcfe (51% liquids) and third quarter 2016 production averaged 0.4 Mmcfed. The Company will use the proceeds for general corporate purposes.
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.