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| Contango Spuds Two Offshore Wells and Updates Operations |
MARCH 5, 2010 — HOUSTON, TEXAS — Contango Oil & Gas Company (NYSE Amex:MCF) announced today that the Company has spud two exploration wells in the Gulf of Mexico. Our Dude prospect (Matagorda Island 617) was spud in mid-February 2010. In addition, we have taken a farm-in on block Eugene Island 10 to drill a well on our Eloise South prospect. This well was spud March 2, 2010 and will test the Rob L sands we see in our Eloise North well, and is being drilled in a location so that upon depletion of our Eloise South well, our well bore will be completed up-hole and produce in the Cib-op sand as our Dutch #5 well. The Company has a 100% working interest (72% net revenue interest) in Dude, a 29.7% working interest (19% net revenue interest) in Eloise South, and a 47.0% working interest (37.6% net revenue interest) in Dutch #5. Collectively, the Company has budgeted to invest a total, net to our interest, of approximately $25.0 million to drill both wells. |
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Contango is a Houston-based, independent natural gas and oil company. The Company's business is to explore, develop, produce and acquire natural gas and oil properties primarily offshore in the Gulf of Mexico. Contango Operators, Inc. (“COI”), our wholly-owned subsidiary, acts as operator on certain offshore prospects.
The Company has approximately 15.8 million shares of common stock outstanding, plus an additional 0.7 million shares reserved for exercise of options currently outstanding. Management and the Board of Directors own 24% of the Company's fully diluted shares. We have seven employees.