Contango Oil & Gas Company announces that its affiliated company, Republic Exploration LLC (“REX”), was the high bidder on two lease tracts at the State of Louisiana Mineral Lease Sale held on February 14, 2007 in Louisiana. REX bid approximately $0.2 million ($0.08 million net to Contango) on 51.65 acres of Tract 38858, and approximately $4.4 million ($1.8 million net to Contango) on 1,436.26 acres of Tract 38860 (collectively, the “Mary Rose” prospect).
The Company also announced today that its Dutch #1 well at Eugene Island 10 is flowing at 37 million cubic feet equivalent per day (“Mmcfe/d”) (12.2 Mmcfe/d net to Contango). Further, the remaining $20 million of our previously announced $30 million secured term loan facility with a private investment firm is now fully available.
