29 July 2016drilling progress report● NeutralMajor
On July 26, 2016 Contango closed its purchase of half of the seller's interest in about 12,100 gross undeveloped acres (about 5,000 net) in the Southern Delaware Basin of Texas. It paid $10 million cash at closing, owes another $10 million in carried well costs over 14 months, and up to $5 million in contingent fees once additional wells are spud after six are drilled. This is the acquisition the July 2016 share offering was meant to fund, and it begins a new Texas oil area for the company.