Contango Oil & Gas is to buy low decline, conventional gas assets in the Wind River Basin of Wyoming from ConocoPhillips.
Contango will acquire approximately 446 bcfe of gas reserves for $67m, with the acquisition closing in the third quarter of 2021.
Wilkie S. Colyer, Contango’s CEO, said: “We are intimately familiar with the area via assets acquired in the MCEP and Silvertip transactions, and we have the right team to maximize the value of these mature, low decline, and conventional properties. Our previously announced merger with Independence was designed to accelerate our acquisition pace rather than slow it down, and this transaction is a perfect example of that.”
As of July 1, the assets had a net production run rate of approximately 78 mmcfe/d. The deal is expected to increase Contango’s run rate production by approximately 57% in Q3 of 2021, with an expected production decline of approximately 5% per year over the next five years.
For more information visit: www.contango.com