Contango to Spud Ship Shoal 263 - Nautilus Prospect on October 10th and Updates Operations.HOUSTON -- 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 (NYSE NYSE See: New York Stock Exchange Amex: MCF) announces that the Company's wholly-owned subsidiary, Contango Operators, Inc., was successful at the State of Texas Lease Sale held on October 6, 2009. We bid a total of approximately $800,000 on five lease blocks, Galveston Area 50, 53, 59, 60 and 74; collectively, this prospect has been named "His Dudeness". All five blocks have been awarded. The Company also announces that we have been awarded the three lease blocks we bid on at the Western 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 Lease Sale No. 210 on August 19, 2009. The Company was awarded Matagorda Island Matagorda Island, Spanish for "thick brush," is a 38 mile (61 km) long barrier island on the Texas Gulf coast, about seven miles south of Port O'Connor. The island is oriented generally northeast-southwest, with the Gulf of Mexico on the east and south, and Espiritu Santo Blocks 607 and 616 (collectively, "El Duderino") and Matagorda Island Block 617 ("Dude"). Our current net production is approximately 88 million cubic feet equivalent per day. Contango remains debt-free and has approximately $47.0 million of cash on hand and $50.0 million of unused borrowing capacity. Kenneth R. Peak, the Company's Chairman and Chief Executive Officer, said, "We expect to spud our Ship Shoal 263 ("Nautilus nautilus, in zoology nautilus, cephalopod mollusk belonging to the sole surviving genus (Nautilus) of a subclass that flourished 200 million years ago, known as the nautiloids. ") prospect this weekend, and our goal is to also drill our "Dude" and "His Dudeness" prospects, and depending on the results of these prospects, perhaps our "El Duderino" prospect, all prior to our fiscal year end June 30, 2010." Contango is a Houston-based, independent natural gas and oil company. The Company's core business is to explore, develop, produce and acquire natural gas and oil properties primarily offshore in the Gulf of Mexico. Additional information can be found on our web page at www.contango.com. This press 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. regarding Contango that are intended to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. "forward-looking statements" provided by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, based on Contango's current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", "projects", "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward-looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value Expected value The weighted average of a probability distribution. Also known as the mean value. from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Contango's operations or financial results are included in Contango's other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or management's estimates or opinions change. |
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