Contango Completes the Sale of its Western Core Fayetteville Shale Properties.HOUSTON -- Contango Contango When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date. Notes: This is the opposite of backwardation. Oil & Gas Company (AMEX AMEX See: American Stock Exchange :MCF) announced today that the previously announced sale of its Western Core Fayetteville Shale properties to Petrohawk Energy Corporation ("Petrohawk") (NYSE NYSE See: New York Stock Exchange :HK) closed on December 21, 2007. The Company received a total of $199.2 million and intends to use the proceeds to finance the purchase of producing properties utilizing a 1031 like-kind exchange structure. Assuming a successful like-kind exchange, the Company expects to report a profit on this sale of approximately $162.4 million in the quarter ending December 31, 2007. Kenneth R. Peak, the Company's Chairman and Chief Executive Officer, said, "We have already begun the process to analyze potential property acquisitions to fully utilize our $199.2 million in proceeds in a like-kind exchange. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , our proceeds will be invested at a rate of approximately 4.5%." Contango is a Houston-based, independent natural gas and oil company. The Company's core business is to explore, develop, produce and acquire natural gas and oil properties primarily offshore in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and onshore in the Arkansas Fayetteville Shale. The Company also owns a 10% interest in a limited partnership formed to develop an LNG LNG (liquefied natural gas): see under natural gas. receiving terminal in Freeport, Texas Freeport is a city in Brazoria County, Texas within the Houston–Sugar Land–Baytown Metropolitan Area and is situated in Southeast Texas. As of the 2000 U.S. Census, the city population was 12,708 and is about sixteen miles away from Angleton. , and holds investments in companies focused on commercializing environmentally preferred energy technologies. Additional information can be found on our web page at www.contango.com. This press release contains forward-looking statements that involve risks and uncertainties, and actual events or results may differ materially from Contango's expectations. The statements reflect Contango's current views with respect to future events that involve risks and uncertainties, including those related to successful negotiations with other parties, oil and gas exploration risks, price volatility, production levels, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in Contango's publicly available reports filed with the Securities and Exchange Commission. |
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