Wilkie Colyer knows a target-rich environment when he sees it. Little more than a month ago, the CEO of Houston-based Contango Oil & Gas remarked on the company’s acquisition of Tulsa-based Mid-Con Energy as a response to “an industry in dire need of consolidation.” The $400 million all-stock deal expanded Contango’s presence in Okla., and Wyo., and added to a portfolio that includes operations in the Permian and offshore in the Gulf of Mexico. But flirtations with distressed and stranded assets in need of a new home didn’t stop there; as a matter of fact, it’s part and parcel of this E&P’s broader business strategy to strike when the iron is hot. Reese Energy Consulting today is following the latest strike by Contango, which will pick up a bank-owned package deal for $58 million that grows its presence in two of the company’s core operating areas by 182,000 net acres. The acquisition includes 7.5 MBOED of production and 18.3 MMBOE of PDP, oily, low-decline reserves in Wyo.’s Big Horn Basin and the Central Basin Platform and Northwest Shelf areas of the Permian. Looks like a bullseye.
Contango Oil & Gas Company is an independent oil and gas company based in Houston, Texas, focused on the exploration, development, production and acquisition of natural gas and oil properties both onshore and offshore in the shallow waters of the Gulf of Mexico.