Contango Oil & Gas Company reported net income attributable to common stock for the three months ended March 31, 2008 of approximately $112.4 million, or $6.97 per basic share and $6.59 per diluted share, which included a gain on the sale of our 10% limited partnership interest in Freeport LNG Development LP of approximately $63.0 million, offset by a loss of approximately $3.0 million related to the sale and write-down of certain assets held by Contango Venture Capital Corporation. Additionally, the results include approximately $69.0 million of discontinued operations related to the sale of our Arkansas Fayetteville Shale properties. This compares to net income attributable to common stock for the three months ended March 31, 2007 of $156,490, or $0.01 per basic and diluted share.
The net income attributable to Contango common stock for the nine months ended March 31, 2008 was approximately $229.4 million, or $14.30 per basic share and $13.45 per diluted share, compared to a net loss attributable to common stock for the nine months ended March 31, 2007 of approximately $2.7 million, or $0.18 per basic and diluted share.
The Company also announced today that its Mary Rose #2 well in Louisiana state waters at State Lease No. 19266 has been successfully completed and production tested at a rate of approximately 29 million cubic feet equivalent per day (“Mmcfe/d”). The Company’s net revenue interest in Mary Rose #2 is 38.67%. The Mary Rose #2 is expected to begin producing by the end of June 2008 to the Company’s recently completed platform at Eugene Island 11.
The Company’s Mary Rose #1 and #3 wells are currently producing at a combined 8/8ths rate of approximately 107 Mmcfe/d, while its three Dutch wells are currently producing at a combined 8/8ths rate of approximately 79 Mmcfe/d, for a total of 186 Mmcfe/d (approximately 72.5 Mmcfe/d net to Contango).
Kenneth R. Peak, the Company’s Chairman and Chief Executive Officer, said “We remain on target to open our data room for the potential sale of Contango Oil & Gas Company prior to the end of June 2008.”
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