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Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company. The Company’s business is to maximize production and cash flow from its onshore properties in Texas and Wyoming and offshore properties in the shallow waters of the Gulf of Mexico and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties in the onshore Texas and Rocky Mountain regions of the United States.

Our primary producing areas as of December 2016 included:

  • Gulf of Mexico Offshore Louisiana - water depths less than 300 feet
  • Madison and Grimes counties counties, Texas - Woodbine (Upper Lewisville)
  • Zavala and Dimmit counties, Texas - Buda / Austin Chalk
  • Weston County, Wyoming - Muddy Sandstone
  • Texas Gulf Coast - Conventional formations
  • Sublette County, Wyoming - Jonah Field (1)


(1) Through a 37% equity investment in Exaro Energy III LLC (“Exaro”). Production from this investment is not included in our reported production results or in our reported reserves for any periods reported.

Since October 2013, upon the merger with Crimson Exploration Inc. (“Crimson”) (the “Merger”), the Company had focused its drilling efforts on liquids-rich horizontal resource plays, such as the Woodbine in Southeast Texas, the Eagle Ford and Buda in South Texas, and the Muddy Sandstone in Wyoming. Beginning in the second half of 2015, we limited our drilling program due to the challenging commodity price environment, and instead focused on: (i) the preservation of our strong and flexible financial position, including limiting our overall capital expenditure budget; (ii) the identification of opportunities for cost and production efficiencies in all areas of our operations; and (iii) the maintenance of core leases and the continued identification of new resource potential opportunities internally, and, where appropriate, through acquisition. As a result, our only drilling activity in early 2016 was in Weston County, Wyoming where we completed our third well targeting the Muddy Sandstone formation. During the third quarter of 2016, we acquired a 12,100 operated gross acre position (5,000 net) in the Southern Delaware Basin in Pecos County, Texas (the “Acquisition”), and as of December 31, 2016, had increased our acreage to 12,500 gross operated acres (6,250 net). We began drilling our initial well in the Southern Delaware Basin in October 2016, with first production from that well occurring in late January 2017. We currently have three subsequent Southern Delaware Basin wells in varying stages of drilling or completion. We expect that our Southern Delaware Basin position will be the primary focus of our drilling program for 2017.

The Company also has (i) operated producing properties in the Haynesville Shale, Mid Bossier and James Lime formations in East Texas and (ii) operated conventional producing properties in the south and southeast areas of Texas. In December 2016, the Company sold its operated producing properties in the Denver Julesburg Basin (“DJ Basin”) in Weld and Adams counties in Colorado.

During the quarter ended September 30, 2016, in conjunction with the purchase of our Southern Delaware Basin position, we completed an underwritten public offering of 5,360,000 shares of our common stock for net proceeds of approximately $50.5 million, which were used to fund the initial purchase of this acreage and provide funding for the costs associated with drilling our initial wells in the Southern Delaware Basin.

Our production for the year ended December 31, 2016 was approximately 26.0 Bcfe (or 71.0 Mmcfe/d), was 68% from our offshore properties and was 70% natural gas. Our production for the three months ended December 31, 2016 was approximately 5.9 Bcfe (or 64.3 Mmcfe/d), was 70% from our offshore properties and was 71% natural gas. As of December 31, 2016, our proved reserves were approximately 85% proved developed, were 61% offshore, were 69% natural gas and were 95% attributed to wells and properties operated by us.


Our mission is to create value for our shareholders through the acquisition, exploitation, exploration and development of oil and gas properties and by investing in a balanced portfolio of longer life reserves and high impact opportunities.

Vision and Values

Our vision is to be recognized as a leading profitable producer of oil and natural gas in the Gulf Coast region and the Gulf of Mexico. We will distinguish ourselves from our competitors by employing strong technical leadership and creative commercial solutions, along with the desire to successfully explore for oil and gas as the low cost producer.

At Contango Oil & Gas Company, we adhere to a defined set of values that promote and sustain relationships based on high ethical standards and personal integrity. Our goal is to maintain a talented, cohesive team committed to those values and standards in promoting Contango as a respected industry leader built on win/win relationships among all employees, shareholders, customers and vendors.

Performance Indicators

At Contango Oil & Gas Company, every prospect is thoroughly screened to ensure it meets our criteria for performance. Among our key performance indicators are:

  • Return on capital employed
  • Finding and development costs
  • Reserve growth
  • EBITDA growth
  • Production growth
  • Cash margin/unit
  • Lease operating costs
  • General and administrative cost/unit