Natural Gas and Oil Reserves
The following table presents our estimated net proved natural gas and oil reserves at December 31, 2012 and June 30, 2012, based on reserve reports generated by William M. Cobb & Associates, Inc.
December 31, 2012 June 30, 2012
Natural Gas (MMcf) 174,032 201,379
Oil, Condensate and NGLs (MBbls) 7,844 9,198
Total Proved Reserves (Mmcfe) 221,096 256,567
As of February 1, 2013, the Company's offshore production was approximately 60.3 million cubic feet equivalent per day ("Mmcfed"), net to Contango, which consists mainly of seven federal and five state of Louisiana wells in the shallow waters of the Gulf of Mexico, which produce through the following three platforms:
View Contango Oil & Gas in a larger map
Exploration Program Summary
On July 3, 2012, we spud our Ship Shoal 134 prospect ("Eagle") with the Hercules 205 rig. On October 19, 2012, we announced that we had reached total depth on Eagle and no commercial hydrocarbons were found. The Company has plugged and abandoned this well. We expect to incur expenses of approximately $29.0 million as a result of drilling, plugging and abandoning this well, including approximately $6.3 million in leasehold costs.
On July 10, 2012 we spud our South Timbalier 75 prospect ("Fang") with the Spartan 303 rig. On October 30, 2012, we announced that we had reached total depth on Fang and no commercial hydrocarbons were found. The Company has plugged and abandoned this well. We expect to incur expenses of approximately $23.0 million as a result of drilling, plugging andabandoning this well, including approximately $0.3 million in leasehold costs.
On June 20, 2012, the Company was the apparent high bidder on six lease blocks at the Central Gulf of Mexico Lease Sale 216/222. The Company bid an aggregate amount of approximately $11 million on these blocks. We have submitted an exploration permit for the first of these blocks, Ship Shoal 255, and have budgeted to spud this well in late-2013. Additionally, we will continue to evaluate new onshore and offshore prospects and will be prepared to place bids at the next Gulf of Mexico lease sale in March 2013. Until we start drilling in late-2013, our plan is to accumulate cash from our producing wells to provide future funding for new prospects and opportunities. As of February 1, 2013, we had approximately $81.9 million of cash, $40.0 million of unused borrowing capacity, and no debt.