April 3, 2018 Houston’s Contango Oil & Gas Company has sold it’s Eagle Ford assets to an unnamed independent. Price for the sale was $21 million for about 1,500 gross acres (1,050 net) in Karnes County, with production estimated at 123 barrels of oil equivalent. The company says proceeds from the sale will go to pay down debt and for “general corporate purposes,” including development of Southern Delaware Basin assets. The deal closed on March 28th. President and CEO Allan D. Keel noted that the Eagle Ford wells were a minimal part of the company’s produciton, accounting for “a little over 1% of our current production and only 2% of our proved developed year-end SEC reserves. “As a result, no unscheduled adjustment to the borrowing base under our credit facility was required. “The sale represents an acceleration of value as it was not likely to be developed by us in the near future as we continue to focus on our Southern Delaware Basin position. “Due to the excellent rates of return expected from the Delaware Basin in this price and cost environment, and our conservative philosophy on funding our capital program, we were pleased to be able to obtain additional liquidity to continue to develop that acreage.” Contango said it plans to continue maximizing production from its shallow offshore Gulf of Mexico properties and its onshore assets in Texas and Wyoming.
Texas-based oil and gas company Contango has sold its assets in the Eagle Ford area to an undisclosed buyer for $21m. The sale was finalised on 28 March and comprised 1,500 gross acres in Karnes County, producing an estimated 123 barrels of oil per day. This represented just over 1% of Contango's current production, and its CEO Allan D. Keel said the company is now focusing on its Southern Delaware assets, along with its offshore properties in Southern Delaware Basin.