For Houston-based Contango, its merger in June with KKR’s Independence Energy created a well-oiled, well-financed machine on the hunt for large, attractive opportunities in a consolidation-ripe environment. The all-stock deal valued at $154.8 million followed Contango’s $400 million acquisition of Mid-Con Energy last November and a $58 million bank-owned pick up in December that expanded the company’s presence in both the Permian and Wyo.’s Big Horn Basin. Reese Energy Consulting today is following the latest news from Contango, which now has completed the $67 million purchase of ConocoPhillips’ natural gas assets in Wyo.’s Wind River Basin. The deal nets the company 78 MMCFD, 446 BCF of reserves, and an expected 53% increase in 3Q production. But don’t look for Contango to choose a slow dance any time soon when it comes to making more acquisitions; it’s just warming up with a goal to build a $6 billion oil and gas powerhouse. Happy Labor Day, everyone.
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Contango Oil & Gas Company
Contango Oil & Gas Company is an independent oil and natural gas company whose underlying business has been to maximize production and cash ﬂow from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Wyoming and Louisiana, and to use that cash ﬂow to explore, develop, exploit, increase production from and acquire crude oil and natural gas properties across the United States. Contango has added to its corporate strategy the implementation of a consolidation strategy to pursue the acquisition of PDP-heavy opportunities that it believes will be available in the near future at attractive valuations from stressed or distressed situations