This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Contango Adds New Director

Contango Oil & Gas Company (NYSE Amex: MCF) announced today that Brad Juneau has joined the Company’s Board of Directors and the Company has entered into an Advisory Agreement with Juneau Exploration, L.P. (“JEX”), whereby JEX will advise Contango’s staff on operational matters including drilling, completions, production and accounting. JEX and its seven employees, including Mr. Juneau, will continue to generate offshore and onshore prospects for the Company.

The Advisory Agreement also changes the variable overhead reimbursement to a fixed amount per month. Instead of a prospect generation fee of $250,000 per prospect generated, Contango will now pay a monthly fee of approximately $167,000.

Kenneth R. Peak, Contango’s Chairman and Chief Executive Officer, said, “Our decision to restructure our arrangement with JEX was driven by several 'new realities' in our industry:

  • Sub $3.00 natural gas has opened up a wide array of both onshore and offshore interesting opportunities.
  • Hands-on operations expertise will play a more prominent role in our ability to capture value.
  • Our 'turn-key exploration model' for the offshore is changing.

“The soaring increases in natural gas reserves and production as a result of shale plays are having profound effects on our industry, and indeed our nation. Our strong balance sheet and profitability are presenting us with opportunities that require immediate evaluation and understanding across a variety of basins and operating environments. Simultaneously, and paradoxically, the industry-wide move to onshore shale plays has opened up more acreage and less competition in the offshore Gulf of Mexico than at any time in my career.

“We believe the offshore Gulf of Mexico is one of the lowest cost exploration basins in the world and it will continue to be the core of our exploration model. The regulatory 'after effects' of the Macondo Spill, however, have altered our ability to outsource, and as a result we will need to grow our operations and accounting staff over the next year. Speaking as Contango’s largest shareholder, I am ecstatic that Brad Juneau will lead the Company through the 'new realities.'”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,723.62 +45.39 0.26%
S&P 500 2,062.11 +5.96 0.29%
NASDAQ 4,893.7070 +30.3450 0.62%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs