Contango Oil & Gas Company Announces a $2.5 Million Equity Investment and an Exploration Participation Agreement with the Southern Ute Indian Tribe Growth Fund.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--June 9, 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 today that the Southern Ute Indian Tribe INDIAN TRIBE. A separate and distinct community or body of the aboriginal Indian race of men found in the United States. 2. Such a tribe, situated within the boundaries of a state, and exercising the powers of government and, sovereignty, under the national Growth Fund has invested $2,500,000 in the company to purchase 2,500,000 shares of common stock at $1.00 per share. Additionally, the company granted to the Southern Ute Indian Tribe Growth Fund a 90-day option to purchase an additional 2,500,000 shares of common stock for $2,500,000. The company intends to use the $2,500,000 to continue its exploration program and for general corporate purposes. As part of these transactions, the company's board of directors has appointed Robert J. Zahradnik, director of operations -- growth fund, as a director of the company. The Southern Ute Indian Tribe Growth Fund is an investment arm of the Southern Ute Indian Tribe in Colorado. Concurrent with the execution of the Securities Purchase Agreement, the company and the Southern Ute Indian Tribe Growth Fund entered into a two-year Participation Agreement whereby the Southern Ute Indian Tribe Growth Fund will have the right to acquire an 18.75% interest in all of Contango's oil and natural gas exploration and development projects and proved property acquisitions. The Southern Ute Indian Tribe Growth Fund, simultaneous with today's equity purchase, invested $480,000 in the company's exploration program. Kenneth R. Peak, chairman and chief executive officer of Contango, stated, "We are extremely pleased to have the Southern Ute Indian Tribe Growth Fund as both a significant shareholder and a participant in our exploration program. The Southern Ute Indian Tribe is a major producer and transporter of coal bed methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. . We are excited that Contango represents the Southern Ute Indian Tribe's first energy investment outside of Colorado." 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 . 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. |
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