If we risk our probability of success assuming one in two prospects work, a 50% success rate, we project we will find approximately 225 Bcfee, net to Contango, for a projected F&D cost in the range of $1.00 to $1.50 per Mcfee.Kenneth R. Peak, Contango’s Chairman and Chief Executive Officer, said “I caution everyone to keep in mind that these assumptions may be completely wrong. We may spend $167 million of our funds and find no reserves. Furthermore, our cost estimates could be substantially higher if we encounter hurricanes, drilling problems or mechanical problems. Drilling oil and gas wells in the Gulf of Mexico involves a high degree of risk. Please review our “Risk Factors” on Form 10-Q for the nine months ended March 31, 2012 filed with the Securities and Exchange Commission (“SEC”).”
Contango Apparent High Bidder At Central Gulf Of Mexico Lease Sale 216/222 And Updates Operations
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