Contango Oil & Gas Company Announces an Additional Reserve Acquisition in South Texas.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 9, 2002 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 it has further increased its ownership interest in its core South Texas Exploration Property (STEP) by paying $1.8 million for an overriding royalty interest overriding royalty interest A third-party interest in royalty income derived from oil and gas rights. in an estimated 1.0 Bcfe of proved developed producing reserves, or approximately $1.58/Mmbtue. Kenneth R. Peak, chairman and chief executive officer, said, "Our working interest and net revenue interest in our core STEP property now stands at approximately 56% and 42% respectively. The pre-tax PV10 of our company wide proved developed producing reserves using early January NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). strip prices as adjusted for basis and transportation now stands at approximately $50 million." Contango is a Houston-based, independent natural gas and oil company. The company explores and acquires natural gas and oil properties primarily onshore in the Gulf Coast, 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 and the Rocky Mountains. Additional information can be found on our Web page at www.contango-oandg.com. This news release contains forward-looking statements 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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