Contango Oil & Gas Acquires ConocoPhillips' Wind River Basin Assets
Contango Oil & Gas Acquires Wind River Basin Assets in Wyoming
Contango Resources Inc., a wholly-owned subsidiary of Houston-based Contango Oil & Gas Co., has entered into a purchase and sale agreement with NYSE-listed ConocoPhillips and its subsidiaries to acquire all their upstream assets and related facilities in the Wind River basin for a total purchase price of US$67 million in cash.
The assets acquired include approximately 44,000 net acres of Wind River basin assets located in Fremont and Natrona counties, Wyoming. The acreage contains the Madden field, and primarily targets the Lower Fort Union, Mesaverde, Lance, Cody, and Madison formations. The transaction also includes a 60% owned interest in the Lost Cabin gas plant, which has a natural gas processing capacity of around 246 million cubic feet per day (MMcf/d), and a 65% owned interest in the Lost Creek pipeline, which transports gas from the Lost Cabin gas plant to third-party pipelines.
As of June 1, 2021, the total net proved (1P) reserves attributable to the assets were approximately 446 billion cubic feet equivalent (Bcfe), with a current average daily production of approximately 78 million cubic feet equivalent per day (MMcfe/d).
“The acquisition of these Wind River basin assets is yet another step in our consolidation strategy and an excellent fit to our asset profile. This is a huge, conventional gas field with low decline, purchased at an attractive valuation,” commented Wilkie S. Colyer, CEO of Contango Oil & Gas.
NYSE-listed Contango Oil & Gas is engaged in exploration, development, and production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas, Oklahoma, and Wyoming.
Headquartered in Houston, ConocoPhillips is engaged in the exploration, production, transportation and marketing of crude oil, natural gas, natural gas liquids, LNG, and bitumen, with operations and activities in 17 countries across the Americas, Europe, North Africa, Asia-Pacific, and the Middle East.
Lazard is acting as financial advisor to Contango Oil & Gas for the transaction.
The transaction is subject to customary closing conditions, and is expected to complete in Q3-2021, with an effective date of June 1, 2021.