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 Reports First Quarter Results

Stocks in this article: MCF

Brad Juneau, the Company’s President and Acting Chief Executive Officer, said, “Our results this quarter were negatively affected primarily by a combination of dry holes at our Eagle and Fang prospects, lower natural gas prices, impairment charges related to our Ship Shoal 263 well and the Eugene Island 24 platform, and an unusual amount of production downtime due to Hurricane Isaac and planned production enhancement work at Dutch and Mary Rose and Vermilion 170. At Dutch and Mary Rose, we installed additional flowlines for three wells and at Vermilion 170 we installed compression on the existing platform. Our reserves as of September 30, 2012 were approximately 195 billion cubic feet of natural gas, 3.1 million barrels of oil, and 5.8 million barrels of natural gas liquids, as estimated by our third party engineers.”

Mr. Juneau continued, “We do not expect to spud any new offshore prospects until midyear 2013 when permits on our existing six prospect inventory are expected to be approved. We intend to drill these prospects with a one rig program as soon as a rig is secured following permit approval. We will continue to participate in the Exaro Energy venture in the Jonah field, the Alta Energy venture in the Kaybob Duverynay play, and we are currently participating with a 25% working interest in a Tuscaloosa Marine Shale well near our existing 24,000 acre lease position. The cost for these onshore wells have largely been paid in advance, with approximately $51.2 million already advanced to the operators to cover our share of the drilling/leasing costs for the next several months.”

Our capital expenditure budget for the final nine months of fiscal year 2013 is approximately $119.9 million, consisting of the following:

  • $22.7 million to pay for costs related to our Ship Shoal 134 (“Eagle”) dry hole. ($19.9 million of this was paid in October and November 2012)
  • $22.7 million to pay for costs related to our South Timbalier 75 (“Fang”) dry hole. ($18.3 million of this was paid in October and November 2012)
  • $4.3 million to pay for remaining leasehold costs and rental payments for the lease blocks bid on at the Central Gulf of Mexico Lease Sale 216/222. (paid in October 2012)
  • $4.3 million to acquire acreage and drill a well in the TMS with Goodrich. (paid in October 2012)
  • $5.3 million to complete laying flowlines and installing compression on our Eugene Island 11 and Vermilion 170 platforms.
  • $20.0 million to drill one wildcat exploration well in the Gulf of Mexico.
  • $33.7 million in Exaro Energy III LLC.
  • $6.9 million in Alta Energy.

Should the Company have exploration success with any of its offshore exploration wells, our capital expenditure budget will be significantly increased. As of November 1, 2012, we had no debt, approximately $96.5 million of cash, and $40.0 million of unused borrowing capacity.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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