Each one in plain English, with the numbers worked through for a shareholder.
18 May 2011asset acquisition disposition● NeutralMajor
Contango sold substantially all of its onshore Texas assets to Patara Oil & Gas LLC for $40.0 million on May 13, 2011 (effective April 1, 2011). This includes the Panola County wells from the Conterra/Patara joint venture started in late 2009. Patara's CEO, B.A. Berilgen, is a Contango director, so this is a related-party sale, though the filing says the price was set by arm's-length negotiation. The company expects a roughly $0.3 million pre-tax loss and says it will use the proceeds to help fund its 2011 capital program.
I.R.S. IDENTIFICATION OF ABOVE PERSON Kenneth R. Peak reported a CONTANGO OIL & GAS CO shareholding of 2,428,196 shares (15.50% of votes) in a periodic institutional filing.
I.R.S. IDENTIFICATION OF ABOVE PERSON Kenneth R. Peak reported a CONTANGO OIL & GAS CO shareholding of 2,757,915 shares (17.60% of votes) in a periodic institutional filing.
Contango arranged a new $40 million secured revolving credit line with Amegy Bank, due October 1, 2014, at LIBOR plus 2.5% (0.75% LIBOR floor), with a $300,000 arrangement fee paid. Nothing has been drawn; the company says it has no debt, about $60 million of net cash and $40 million of unused borrowing capacity as of October 21, 2010. This is a new facility; the earlier Guaranty Bank revolver (due Oct 2010) is not mentioned in this filing.
I.R.S. Identification of above person Kenneth R. Peak reported a CONTANGO OIL & GAS CO shareholding of 3,057,915 shares (19.20% of votes) in a periodic institutional filing.
