Contango Updates Southern Delaware Basin Operations
April 11 2018 - 8:00AM
Contango Oil & Gas Company (NYSE American:MCF) announced
today an update on its Southern Delaware Basin acreage in Pecos
County, Texas.
River Rattler #1H
As previously reported, the River Rattler #1H
(44% WI, 33% NRI), our first Wolfcamp B test, was spud in December
2017, was drilled to a total measured depth of 20,710 feet and was
recently completed with 50 stages of fracture stimulation in a
10,275 foot lateral. Production began in March 2018 at an initial
24-hour max IP rate of 1,416 Boed (74% oil), making it our best
well to date. Since then, after 15 days of full production, the
well has averaged 1,345 Boed (74% oil). We continue to identify
cost efficiencies in our drilling efforts, as evidenced by the fact
that the Ragin Bull #3H, which immediately preceded this well, and
River Rattler #1H have taken only 27 days from spud to TMD.
Ragin Bull #2H
The Ragin Bull #2H (49% WI, 37% NRI), our second
Wolfcamp B test, was spud in January 2018, approximately 0.6 miles
south of the Ragin Bull #3H and 1.6 miles south of the River
Rattler #1H. The well was drilled to a total measured depth
of 20,625 feet; was completed with 59 stages of fracture
stimulation in a 10,344 foot lateral and is currently flowing back.
This well represents our fastest spud to total depth so far at 26.5
days.
Sidewinder #1H / Gunner #3H
In March 2018, we spud the Sidewinder #1H (49%
WI, 37% NRI), the first of two wells to be drilled from a common
pad. The Sidewinder was drilled to a total measured depth of 20,550
feet including approximately 10,500 feet of lateral into the
Wolfcamp A horizon just south of the Rude Ram #1H Wolfcamp A
completion, which has produced 155 MBoe in nine months. The Gunner
well was spud on April 4, 2018 is currently at a vertical depth of
4,700 feet. This well will be a Wolfcamp B test with a 10,000 foot
lateral in the same unit as the Gunner #2H Wolfcamp A completion,
which so far is our best producing well to date having produced
approximately 130 MBoe in six months. Both wells from this
pad are expected to begin completion operations via a zipper frac
strategy in June 2018.
Contango Oil & Gas Company is a Houston,
Texas based, independent energy company whose business is to
maximize production from its shallow offshore Gulf of Mexico
properties and onshore properties in Texas and Wyoming, and to use
that cash flow to explore, develop, exploit, produce and acquire
crude oil and natural gas properties in the Texas and Rocky
Mountain regions of the United States. Additional information is
available on the Company's website at http://www.contango.com.
This press release contains forward-looking
statements regarding Contango that are intended to be covered by
the safe harbor "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995, based on
Contango’s current expectations and includes statements regarding
acquisitions and divestitures, estimates of future production,
future results of operations, quality and nature of the asset base,
the assumptions upon which estimates are based and other
expectations, beliefs, plans, objectives, assumptions, strategies
or statements about future events or performance (often, but not
always, using words such as "expects", “projects”, "anticipates",
"plans", "estimates", "potential", "possible", "probable", or
"intends", or stating that certain actions, events or results
"may", "will", "should", or "could" be taken, occur or be
achieved). Statements concerning oil and gas reserves also may be
deemed to be forward looking statements in that they reflect
estimates based on certain assumptions that the resources involved
can be economically exploited. Forward-looking statements are based
on current expectations, estimates and projections that involve a
number of risks and uncertainties, which could cause actual results
to differ materially from those, reflected in the statements. These
risks include, but are not limited to: the risks of the oil and gas
industry (for example, operational risks in exploring for,
developing and producing crude oil and natural gas; risks and
uncertainties involving geology of oil and gas deposits; the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to future production, costs and expenses;
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; health, safety and
environmental risks and risks related to weather such as hurricanes
and other natural disasters); uncertainties as to the availability
and cost of financing; fluctuations in oil and gas prices; risks
associated with derivative positions; inability to realize expected
value from acquisitions, inability of our management team to
execute its plans to meet its goals, shortages of drilling
equipment, oil field personnel and services, unavailability of
gathering systems, pipelines and processing facilities and the
possibility that government policies may change or governmental
approvals may be delayed or withheld. Additional information on
these and other factors which could affect Contango’s operations or
financial results are included in Contango’s other reports on file
with the Securities and Exchange Commission. Investors are
cautioned that any forward-looking statements are not guarantees of
future performance and actual results or developments may differ
materially from the projections in the forward-looking statements.
Forward-looking statements are based on the estimates and opinions
of management at the time the statements are made. Contango does
not assume any obligation to update forward-looking statements
should circumstances or management's estimates or opinions change.
Initial production rates are subject to decline over time and
should not be regarded as reflective of sustained production
levels.
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Contact: |
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Contango Oil & Gas Company |
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E.
Joseph Grady – 713-236-7400 |
Sergio Castro – 713-236-7400 |
Senior Vice President and Chief Financial Officer |
Vice President and Treasurer |
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