SES - Contango Oil & Gas Highlights - July 2, 2020In Grand Isle block 45, Contango Oil & Gas’ Iron Flea exploration well was unsuccessful. The prospect, drilled in 12,500 ft of water at an estimated dry hole cost of over $7 million, had targeted 21 MMboe in reserve potential. Contango drilled the well in a joint development agreement with Juneau Oil & Gas. Contango would have acquired 85-90% in the well in the case of a...
Jul 02, 2020
CM - Mid-Con recapitalizes & signs new operatorship agreement - June 2020Mid-Con Energy Partners LP announced a series of transactions that will recapitalize and reorganize the structure of the struggling producer, and change the way it will—or won’t—operate moving forward. To kick it all off, MidCon will no longer operate its properties through its Mid-Con Energy Operating subsidiary. Instead, it has contracted that task to Contango Resources Inc., subsidiary of Contango Oil & Gas Co., which will charge a flat fee and receive warrants to buy Mid-Con’s equity....
Jun 26, 2020
PS- Contango’s Iron Flea swatted down in Gulf of Mexico - June 2020In Grand Isle block 45 in the Gulf of Mexico, Contango Oil & Gas reached TD on the Iron Flea exploration well on June 12 and was unsuccessful, the company said. The prospect was drilled in 12,500 ft of water at an estimated dry hole cost of over $7 million and had targeted 21 MMboe in reserves. Contango drilled the well in a joint development agreement with Juneau Oil & Gas. Contango was to have acquired 85-90% in the well. “We are obviously disappointed by the Iron Flea...
Jun 24, 2020
PS - Mid-Con transforms structure, hires Contango to operate - June 2020Mid-Con Energy Partners LP has completed a reorganization and recapitalization that will shift the way it does business. The company converted all of its Series A and B preferred units into common units valued at $3.12/unit. Ownership of general partner Mid-Con GP LLC has been transferred to the LP, resulting in strengthened corporate governance. The partnership will no longer operate assets, instead transferring operatorship to Contango Oil & Gas through a management services agreement,...
Jun 24, 2020
MCS - Mid-Con transforms structure, hires Contango to operate
- June 17, 2020Mid-Con Energy Partners LP has completed a reorganization and recapitalization that will shift the way it does business. The company converted all of its Series A and B preferred units into common units valued at $3.12/unit. Ownership of general partner Mid-Con GP LLC has been transferred to the LP, resulting in strengthened corporate governance. The partnership will no longer operate assets, instead transferring operatorship to Contango Oil & Gas through a management services...
Jun 17, 2020
MCS - Contango Oil & Gas Highlights - June 17, 2020Contango Oil & Gas produced an estimated 18,900 boe/d (58% oil, 37% NGLs) during Q1, according to a June 15 press release. Volumes were up just over 3x YOY, primarily due to the acquisition of White Star Petroleum and Will Energy in 4Q19. In Q2, production is expected to be 13,000-16,000...
Jun 17, 2020
QP - Crude stocks draw as production cuts meet rising demand - May 19, 2020Continued crude storage stability is supporting near-term oil pricing along with a narrowing contango in front-month/second-month Nymex crude, which shrank by $1.10/ bbl last week. According to the EIA, commercial crude inventories fell by 745,000 bbl/d the week that ended May 8. Stocks at Cushing dropped by 3 MMbbl, the hub’s first draw since the last week in February. Meanwhile, EIA data indicated a 300,000 bbl/d contraction in Lower 48 field production to 11.2 MMbbl/d. US gasoline...
May 18, 2020
QP - The Week in Crude Oil Markets - March 30, 2020May WTI settled at $21.51/bbl on Friday, down from last Wednesday’s high of $25.24/ bbl. As of this morning’s trading, front-month WTI was testing support at $20/bbl and the front spread has continued deeper into contango at $3.81/bbl. The last time the front spread was this far in contango was in February 2011, when Cushing storage was approaching full capacity. Prompt crude oil prices in the field are approaching single digits in many locations. Shut-ins are likely to emerge in the coming...
Mar 30, 2020
QP - The Week in Crude Oil Markets - February 10, 2020Prompt WTI futures struggled to tread water just above $50/bbl last Friday after Russia said it would need more time to formulate its position vis-à-vis the proposed 600,000 bbl/d of additional OPEC+ production cuts. The coronavirus outbreak in China has led to a major reassessment of global supply/demand fundamentals, with all eyes now on OPEC and allied non-OPEC countries to manage deteriorating physical market conditions. Even before the deadly coronavirus outbreak, early 2020 was set to be...
Feb 10, 2020
A&D - Contango joins Juneau to develop shallow GOM prospects - January 2020Contango Oil & Gas entered a joint development agreement to develop shallowwater prospects in the Gulf of Mexico with long-time partner Juneau Oil & Gas. Contango will have the right to acquire stakes in all of Juneau’s prospects on the Outer Continental Shelf for $6 million, consisting of $1.69 million cash and $4.31 million in stock. The Iron Flea prospect, located in Grand Isle block 45 on the GOM Shelf in a water depth of 12,900 ft, is the first prospect in which Contango...
Jan 16, 2020
CM - Contango sells more stock, signs development deal with Juneau - January 2020Contango Oil & Gas will gross $59.2 million from a common stock sale to asset manager T. Rowe Price and other institutional and accredited investors, as well as preferred stock sales to company insiders. It will use funds for capex related to a joint development agreement with Juneau Oil & Gas. Contango will place 19 million new shares privately with the accredited investors for gross proceeds of $53.35 million, and 2.34 million Series C shares, a new series, with entities owned...
Jan 10, 2020
PS - Operators draw in partners for 2020 development - January 2020At a time when free cash flow is taking priority over other objectives, companies are finding ways to move development forward with less investment. Several JVs were announced in the final weeks of 2019. Much like it did in the Barnett last year, Devon Energy entered into a joint development agreement with Dow in the STACK. Dow will receive half of Devon’s working interest, estimated to average 60%, in a mix of standard and extended-reach horizontal locations in central Oklahoma in...
Jan 06, 2020
PS - Contango finds competitive GOM opportunities in JDA with Juneau - January 2020Contango Oil & Gas signed a joint development agreement with Juneau Oil & Gas to develop certain exploration prospects on the Gulf of Mexico shelf. Contango will have the right to acquire an interest in all of Juneau’s prospects for total consideration of $6 million. The company has elected to participate in one well and will have the option to participate for at least 80% NRI in future wells. Contango will initially buy into the Iron Flea prospect in Grand Isle block 45, which...
Jan 06, 2020
ALT - Contango Oil & Gas Highlights - December 12, 2019Contango Oil & Gas closed its $23 million acquisition of Will Energy. The properties acquired from Will cover 159,872 net acres (95% HBP): 147,312 net acres in the western Anadarko Basin of western Oklahoma and the Texas Panhandle and 12,560 net acres in northern...
Dec 12, 2019
PS - News Briefs - June 24, 2020According to a Tudor, Pickering, Holt & Co. survey, 70 of 450 available frac fleets are active, putting utilization at a “putrid” 16%. The Marcellus is the most active play in the US, with 31% of the active frac crews. The other most active plays are the Permian with 30%, the Eagle Ford with 14% and the Haynesville with 14%. Seneca Resources produced 657.1 MMcfe/d in Q1, up 23% YOY. The upstream National Fuel Gas subsidiary curtailed 2.7 Bcf (about 30 MMcf/d) of net production...
Jun 24, 2020