Contango Oil & Gas Company Announces Second Quarter Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Feb. 16, 2000 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 (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BTUX) announced results for the three and six months ended December December: see month. 31, 1999. Contango, a development stage company, reported its first revenues during the three months ended December 31, 1999 of $6,367. Net loss attributable to common stock for the three months ended December 31, 1999 was $(297,575), or $(0.02) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss for the three months ended December 31, 1998 of $(35,508), or $(0.02) per diluted share. Net loss attributable to common stock for the six months ended December 31, 1999 was $(595,955), or $(0.06) per diluted share, compared to a net loss for the six months ended December 31, 1998 of $(47,737), or $(0.03) per diluted share. The company had no revenues for the three and six months ended December 31, 1998. The results of operations for 1999 are not directly comparable to results for 1998, when the company was a "shell" corporation without operations. Additionally, the company incurred start-up Start-up The earliest stage of a new business venture. costs in the three and six months ended December 31, 1999 as a result of opening its corporate office in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; and the company's entry into the oil and natural gas business. Kenneth R. Peak, chairman and chief executive officer, stated, "In addition to reporting our first oil and natural gas revenues during the period, we completed two small producing property acquisitions at a cost of approximately $230,000 and bought and resold a leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. position in East Texas receiving net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). after costs of approximately $75,000 and retaining a 3% overriding royalty interest overriding royalty interest A third-party interest in royalty income derived from oil and gas rights. . Contango is a Houston-based, development stage, independent oil and natural gas company. The company explores and acquires oil and gas properties primarily in the onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Gulf Coast and offshore 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 . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties 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 the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur. (financial information follows)
CONTANGO OIL & GAS COMPANY (A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Cumulative
Total from
Inception
Three Months Ended Six Months Ended of
December 31, December 31, Development
1999 1998 1999 1998 Stage
------ ------ ------ ------ -----------
Oil and natural
gas sales $6,367 $ -- $6,367 $ -- $6,367
Expenses:
Lease operating
expense 1,677 -- 1,677 -- 1,677
Exploration
expense 78,928 -- 88,928 -- 88,928
Depreciation,
depletion and
amortization 1,438 -- 2,048 -- 2,048
General and
administrative
expense 241,401 26,524 531,471 45,818 531,471
--------- ---------- ---------- ---------- ----------
Total expenses 323,444 26,524 624,124 45,818 624,124
--------- ---------- ---------- ---------- ----------
Loss from
operations (317,077) (26,524) (617,757) (45,818) (617,757)
Interest income 19,502 6,129 21,802 13,194 21,802
--------- ---------- ---------- ---------- ----------
Net loss (297,575) (20,395) (595,955) (32,624) (595,955)
Preferred stock
dividends -- 15,113 -- 15,113 --
--------- ---------- ---------- ---------- ----------
Net loss
attributable to
common stock $(297,575) $(35,508) $(595,955) $(47,737) $(595,955)
========= ========== ========== ========== ==========
Basic and diluted
net loss per
share $(0.02) $(0.02) $(0.06) $(0.03) $(0.06)
========= ========== ========== ========== ==========
Weighted average
common shares
outstanding 13,033,082 1,509,865 9,326,800 1,509,865 9,326,800
========== ========== ========== ========== ==========
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