Contango Oil & Gas Company announced yesterday that the Company’s wholly-owned subsidiary, Contango Operators, Inc., was the apparent high bidder on each of the three lease blocks, representing two prospects, bid at the Central Gulf of Mexico Lease Sale 227 held on March 20, 2013.
The Company bid a total of approximately $1.7 million on the following blocks: Eugene Island 23, Ship Shoal 52, Ship Shoal 59
An apparent high bid (“AHB”) is subject to Outer Continental Shelf (“OCS”) Bid Adequacy Review, notwithstanding the fact that the Bureau of Ocean Energy Management (“BOEM”) may reject all bids for a given tract. The BOEM review process can take up to 90 days. Upon approval from the BOEM, our plan is to promptly seek permits to drill these prospects in 2014.
Joseph J. Romano, the Company’s President and Chief Executive Officer, said, “We are excited about these prospects and if awarded, expect to drill both prospects in 2014 following the drilling of our Ship Shoal 255 prospect. Ship Shoal 255 is one of the six prospects we were awarded at the previous lease sale in June 2012. We have submitted our exploration plan for this prospect and expect to drill the well in the third quarter of 2013.”
Contango is a Houston-based, independent natural gas and oil company. The Company’s business is to explore, develop, produce and acquire natural gas and oil properties onshore and offshore in the shallow waters of the Gulf of Mexico.