Contango Oil & Gas Company (NYSE MKT: MCF) reported today that for the three months ended June 30, 2013, the Company had net income attributable to common stock of approximately $11.4 million, or $0.75 per basic and diluted share, compared to net income attributable to common stock for the three months ended June 30, 2012 of approximately $9.3 million, or $0.61 per basic and diluted share. For the three months ended June 30, 2013, natural gas and oil sales from continuing operations were approximately $30.7 million, down from $39.8 million for the three months ended June 30, 2012.
Revenues for the quarter decreased by approximately $9.1 million when compared to the same period last year due to decreased production at our Vermilion 170 and Ship Shoal 263 wells. Our Vermilion 170 well was shut-in for approximately 60 days during the quarter for workover operations, which reduced our revenues for the quarter by approximately $6.2 million. This well resumed production in June and as of June 30, 2013 was producing at a rate of approximately 9.5 million cubic feet equivalent per day (“Mmcfed”), net to Contango. Our Ship Shoal 263 well began to water-out in August 2012, which reduced our revenues for the quarter by approximately $3.8 million when compared to the same period last year.
While net income for the three months ended June 30, 2013 increased when compared to the three months ended June 30, 2012, we still had some non-recurring expense items included in the period, such as higher workover costs and general and administrative expenses as follows:
- We incurred approximately $7.7 million in workover costs for the quarter associated with our Vermilion 170 well.
- We incurred approximately $2.3 million in expenditures associated with the merger with Crimson Exploration, Inc. (“Crimson”)
For the fiscal year ended June 30, 2013, natural gas and oil sales from continuing operations were approximately $127.2 million, compared to $179.3 million for the same period last year. This decrease of $52.1 million was mainly attributable to decreased production at our Vermilion 170 and Ship Shoal 263 wells, as well as a decrease in the price received for oil and condensate and natural gas liquids (“NGLs”) for the period, slightly offset by an increase in the price received for natural gas.
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