Contango Purchases Option on Freeport LNG Facility.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--June 5, 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 purchased options to buy up to a 20% equity interest in the Cheniere Energy Inc. (AMEX:CXY) proposed Freeport, Texas, LNG LNG (liquefied natural gas): see under natural gas. receiving terminal ("Freeport"). The purchase price for an initial 10% interest in the project is $1.5 million, consisting of a $750,000 payment made at signing and the balance payable upon exercise of the option. In the event Contango elects not to exercise the initial 10% option, the $750,000 up-front payment will be repaid to Contango on or prior to July 15, 2003. In the event the initial 10% option is exercised, Contango will have the right to acquire an additional 10% interest in the project upon payment of an additional $1.5 million. Contango would also be responsible for its share of all project costs, subsequent to Jan. 1, 2002. Kenneth R. Peak, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are delighted to be working with Cheniere's experienced management team to help make their Freeport LNG facility become a reality. With growing concerns regarding the 'greenhouse effect' and carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. emissions, I believe additional LNG imports will be required to help close the gap between North American supplies and our country's growing natural gas demand needs. Cheniere's Freeport location is ideally situated two miles from deep water and within a 100-mile radius of 6 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter per day of consumption." Contango is an independent natural gas and oil company that explores for, develops, produces and sells natural gas and crude oil. Contango's exploration and production efforts are currently focused onshore on the Gulf Coast and 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 . 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion