Contango Comments on DOI 60-Day Suspension of Leasing and Permitting on Federal Lands and Provides Update on Silvertip Acquisition Closing
- Temporary suspension of approvals expected to have no impact on legacy Contango production or production acquired through Mid-Con Energy Partners (“MCEP”) and Silvertip transactions
Pine Tree growth project acquired in the MCEP transaction already has necessary permits approved for base case development program- Temporary suspension not expected to interfere with any plans to restore shut in production with favorable economics at current oil prices across the portfolio
- Project Silvertip acquisition is expected to close
February 1, 2021
Contango does not expect any negative impact on its legacy production or production from either of the recently announced MCEP and Silvertip acquisitions, or on permitting in any of its onshore areas. To the extent Contango has plans to restore shut in production, convert producing wells to injection wells for enhanced oil recovery, or conduct routine well interventions to optimize production, it does not anticipate the suspension will have any effect on those operations.
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Contango Oil &
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on Contango’s current expectations. The words and phrases “should”, “could”, “may”, “will”, “believe”, “plan”, “intend”, “expect”, “potential”, “possible”, and similar expressions identify forward-looking statements and express Contango’s expectations about future events. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Contango expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Contango’s control. Consequently, actual future results could differ materially from Contango’s expectations due to a number of factors, including, but not limited to market conditions, increased governmental regulation, industry conditions, the impact of COVID-19 pandemic, the consummation of the asset acquisition, actions by third parties (including investors and the seller), and other factors which could affect Contango’s operations or financial results, including those described in Contango’s Annual Report on Form 10-K and other reports on file with the
Senior Vice President and Chief Financial Officer
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Source: Contango Oil & Gas