HOUSTON (AP) - Contango Oil & Gas Co. on Friday said it agreed to sell the
remaining eastern core of its Arkansas Fayetteville shale properties to XTO
Energy Inc. for about $128 million.
With the sale of the 11,200 acres net to Contango, the oil and gas explorer
and its partners have agreed to sell a total of about 20,000 acres for about
$236 million.
Contango, which said the deal is part of an ongoing review of strategic
alternatives, intends to use the proceeds to buy producing properties.
The combined sales proceeds from the company's eastern and western
Fayetteville shale assets were about $328 million, Contango said. The sale, set
to close this month, will be effective Dec. 1, 2007.
Merrill Lynch & Co. acted as marketing and financial adviser to Contango and
its partners.
Contango shares rose 71 cents to close at $51.
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