Contango Oil & Gas Plays Small Ball A&D

摘要

CONTANGO OIL & GAS Co.ended 2018 with about $36 million in small deals,mostly in Texas,while increasing the size of its core Bullseye development in the southern Delaware Basin.In some cases,the deals greatly reduced the company's future asset retirement obligations.The company bolted on about 1,900 net operated and nonoperated acres in the southern Delaware for $7.5 million,the company reported March 21.The acreage,acquired on Dec.31,compliments Contango's Bulls-eye position in Pecos County,Texas,where the company holds 6,500 net acres prospective for the Wolfcamp A,Wolfcamp B and 2nd Bone Spring formations.Contango paid $3.2 million in cash in December 2018,with the balance to be paid by the earlier of the commencement of completion operations on the third well on the acreage acquired or by Oct.1.