- 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.
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: