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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Contango Reports Fiscal Second Quarter Results

Contango Oil & Gas Company (NYSE MKT: MCF) reported net income for the quarter ended December 31, 2012 of approximately $2.6 million, or $.17 per basic and diluted share, compared to net income for the same period last year of approximately $19.5 million, or $1.27 per basic and diluted share.

Joseph J. Romano, the Company’s President and Chief Executive Officer, said, “Our earnings this quarter are still being impacted by the two dry holes at Eagle and Fang we drilled the preceding quarter. We incurred $6.3 million in exploration expenses for the quarter related to these two wells, along with $5.7 million of impairment charges related to writing down our reserves at Ship Shoal 263. Lower sales prices as well as production downtime for maintenance also contributed to the decrease in earnings. We received $5.23/Mcfe for the quarter ended December 31, 2012 as compared to $6.18/Mcfe for the quarter ended December 31, 2011.

“Our significant Dutch and Mary Rose fields continue to produce consistent with our forecast. The Company’s balance sheet continues to be very strong. We have no debt, $100 million of working capital, and $7.0 million per month of anticipated cash flow available for exploration. We are presently looking to balance our inventory of offshore prospects with the opportunity to participate further in predictable, high quality, onshore resource plays. We plan to drill our next offshore well in mid-2013 when permits on our Ship Shoal 255 prospect are anticipated to be approved.”

Our offshore reserves as of December 31, 2012 were approximately 221.1 billion cubic feet equivalent (“Bcfe”). These reserves are approximately 27.0 Bcfe less than our proved reserves as of September 30, 2012. The major contributors to this decrease include normal production of 6.7 Bcfe during the quarter, a 5.1 Bcfe decrease in our Ship Shoal 263 reserves estimates, and a 14.0 Bcfe decrease in our Vermilion 170 reserves estimates, as determined by our reservoir engineer.

1 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 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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