HOUSTON, Nov. 04, 2019 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE:MCF) ("Contango" or the "Company") today announced that it has closed its previously announced private placement of 1,102,838 shares of Series B Contingent Convertible Preferred Stock. The Company received gross proceeds of approximately $22 million, including approximately $7 million from affiliates of John C. Goff, chairman of the board of directors, which was used to fund a portion of the purchase price and related transaction expenses for the previously announced acquisition of certain oil and gas properties from White Star Petroleum LLC and certain of its affiliates. The preferred stock will automatically convert into common stock on a one for ten basis upon shareholder approval of an increase in the number of authorized shares of common stock. As of November 1, 2019, the Company had obtained approval of or written agreement to approve such increase from holders of a majority of the voting power of its capital stock.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The shares of preferred stock sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or under any state securities laws and, unless so registered may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is 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 and Wyoming and to use that cash flow to explore, develop, exploit, increase production from and acquire crude oil and natural gas properties in West Texas, the Texas Gulf Coast, Oklahoma and the Rocky Mountain regions of the United States.