Contango Oil & Gas Company Announces Third Quarter Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--May 10, 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 nine months ended March 31, 2000. Contango, a development stage company, reported revenues during the three months ended March 31, 2000 of $23,223. Net loss attributable to common stock for the three months ended March 31, 2000 was $(91,004), or $(0.01) per basic and 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 March 31, 1999 of $(42,711), or $(0.03) per basic and diluted share. Revenues for the nine months ended March 31, 2000 were $29,590. Net loss attributable to common stock for the nine months ended March 31, 2000 was $(686,959), or $(0.06) per basic and diluted share, compared to a net loss for the nine months ended March 31, 1999 of $(90,447), or $(0.06) per basic and diluted share. We had no revenues for the three and nine months ended March 31, 1999. The results of operations for March 31, 2000 periods are not directly comparable to results for the March 31, 1999 periods, as we had no operations from December December: see month. 1997 until July July: see month. 1999. In addition, we did not operate as an oil and natural gas exploration and production company prior to July 1999. We also incurred start-up Start-up The earliest stage of a new business venture. costs in the three and nine months ended March 31, 2000 as a result of opening our 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 our entry into the oil and natural gas business. Kenneth R. Peak, chairman and chief executive officer, stated, "Since entering the oil and natural gas business in July 1999, we have completed two small producing property acquisitions in Texas, acquired and subsequently 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 and have acquired an approximate 2.4% limited partnership interest in an oil and natural gas partnership that owns and operates the Buena Vista Hills field in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . We currently have an interest in 18 producing wells, including a 28.5% working interest in a recent oil discovery on Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. Block 28, 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 . Our initial net production is approximately 100 barrels of oil and 300 thousand cubic feet of natural gas per day." "Additionally, we recently obtained the exploration rights to approximately 65,000 acres in Jim Hogg James Stephen "Jim" Hogg (March 24, 1851 – March 3, 1906) Born near Rusk, Texas, Hogg was a Texas lawyer and statesman, and the Texas-born Governor of Texas. Hogg is often remembered for naming his daughter Ima Hogg, an odd name which derived from a poem written by James' and Brooks counties Brooks County is the name of several counties in the United States:
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. Additional information can be found on our web page at www.contango-oandg.com. 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.
CONTANGO OIL & GAS COMPANY (A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Cumulative
Three Months Nine Months Total from
Ended Ended July 1, 1999
March 31, March 31, (Inception of
------------------ ------------------ Development
2000 1999 2000 1999 Stage)
-------- ------- -------- ------ ---------
REVENUES:
Oil and
Natural
Gas Sales $23,223 $-- $29,590 $-- $29,590
-------- ------- -------- ------- ---------
EXPENSES:
Lease
Operating
Expense 14,114 -- 15,791 -- 15,791
Exploration
Costs 126,006 -- 214,934 -- 214,934
Depreciation,
Depletion
and
Amortization 6,260 -- 8,308 -- 8,308
General and
Administrative
Expense 84,514 40,469 615,985 86,286 615,985
-------- ------- -------- ------- ---------
Total
Expenses 230,894 40,469 855,018 86,286 855,018
-------- ------- -------- ------- ---------
LOSS FROM
OPERATIONS (207,671) (40,469) (825,428) (86,286) (825,428)
Interest
Expense (7,627) -- (7,627) -- (7,627)
Interest
Income 57,107 5,315 78,909 18,508 78,909
Gain On
Sale of
Assets 67,187 -- 67,187 -- 67,187
-------- ------- -------- ------- ---------
NET LOSS (91,004) (35,154) (686,959) (67,778) (686,959)
Preferred
stock
dividends -- 7,557 -- 22,669 --
-------- ------- -------- ------- ---------
NET LOSS
ATTRIBUTABLE
TO COMMON
STOCK $(91,004) $(42,711) $(686,959) $(90,447) $(686,959)
======== ======= ======== ======= =========
DEFICIT
ACCUMULATED
DURING
DEVELOPMENT
STAGE, BEGINNING
OF PERIOD (595,955) -- -- -- --
-------- ------- -------- ------- ---------
DEFICIT
ACCUMULATED
DURING
DEVELOPMENT
STAGE, END
OF PERIOD $(686,959) $-- $(686,959) $-- $(686,959)
======== ======= ======== ======= =========
BASIC AND
DILUTED
NET LOSS
PER SHARE $(0.01) $(0.03) $(0.06) $(0.06) $(0.06)
======== ======= ======== ======= =========
WEIGHTED
AVERAGE
COMMON
SHARES
OUTSTANDING 17,467,519 1,509,865 12,019,380 1,509,865 12,019,380
=========== ========== ========== ========= ==========
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