Contango Oil & Gas Company announced today that it has reached total depth on its South Timbalier 75 prospect (Fang) and no commercial hydrocarbons were found.
The Company will proceed to plug and abandon the well. The Company expects to incur approximately $23.0 million to drill, plug and abandon this well, including leasehold costs.
The Company was recently awarded its final two leases from the last lease sale in June 2012 and will begin immediately to apply for drilling permits.
“Our offshore production is currently approximately 76 million cubic feet equivalent per day. We expect to have approximately $79 million of available cash on hand once we pay all costs associated with Eagle and Fang. We remain debt-free and have $40.0 million of unused borrowing capacity,” said the company in a press release.
Press Release, October 30, 2012