MCF - Contango Oil & Gas to acquire Wind River Basin assets for $67M

Contango Oil & Gas ([[MCF]] -1.7%) has entered into an agreement to acquire low decline, conventional gas assets in the Wind River Basin of Wyoming from ConocoPhillips, for $67M in cash.The agreement provides that Contango will acquire ~446 Bcfe of PDP reserves for a total purchase price of $67M in cash, with a June 1, 2021 effective date. The company intends to fund the purchase price with cash on hand and availability under its existing revolving credit facility.It expects net production run rate of ~78 Mmcfe/d as of July 1, 2021 and increase Contango’s run rate production by ~57% in Q3 of 2021.Closing of the transaction is expected in Q3 of 2021.

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Contango Oil & Gas to acquire Wind River Basin assets for $67M