Contango Says Will Plug and Abandon Well
Contango Oil & Gas Company (NYSE MKT: MCF) announced today that it has reached total depth on its Ship Shoal 134 prospect (Eagle) and no commercial hydrocarbons were found. The Company will proceed to plug and abandon the well. The Company expects to incur approximately $29.5 million to drill, plug and abandon this well, including leasehold costs. We continue to drill ahead with our South Timbalier 75 prospect (Fang). We are running a drilling liner and expect to reach total depth by late-November 2012.
Brad Juneau, the Company's President and Acting Chief Executive Officer, said, “While we are certainly disappointed with the results of Eagle, we fully intend to continue drilling our inventory of offshore prospects, which has been the foundation of our growth over the past several years. We have sufficient cash on hand and expected revenues from operations to drill our offshore acreage inventory during its primary term. After subtracting G&A costs and lease operating expenses, our net monthly revenues are approximately $7.5 million per month, net to the Company.”
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