Each one in plain English, with the numbers worked through for a shareholder.
20 Nov 2018material agreement● NeutralMajor
Contango sold new common stock in an underwritten public offering through Cowen and Intrepid Partners. The base deal was up to 7,500,000 shares, and underwriters bought an extra 1,096,068 shares; net proceeds were about $32.7 million. The money is to reduce borrowings under the revolving credit facility and for general corporate purposes, including possible acquisitions. Existing shareholders are diluted by the new shares, and the company agreed not to sell more stock for 90 days. The filing also adds reserve-engineer consents (including for its 37% interest in Exaro Energy III) tied to the registration statement.
John C. Goff, Goff MCF Partners, LP, Goff Capital, Inc reported a CONTANGO OIL & GAS CO shareholding of 6,248,178 shares (18.90% of votes) in a periodic institutional filing.
John C. Goff, Goff MCF Partners, LP, Goff Capital, Inc, Wilkie Colyer, Jr reported a CONTANGO OIL & GAS CO shareholding of 4,830,880 shares (18.80% of votes) in a periodic institutional filing.
Contango gave a drilling update on its Southern Delaware Basin acreage in Pecos County, Texas. The River Rattler #1H (44% working interest), its first Wolfcamp B test, began production in March 2018 at an initial 24-hour max rate of 1,416 Boed (74% oil), which the company calls its best well to date. The Ragin Bull #2H is flowing back after completion, and the Sidewinder #1H and Gunner #3H wells are being drilled, with completion expected in June 2018. This continues the one-rig program planned in late 2017.
OCM GW Holdings, LLC, OCM Principal Opportunities Fund III, L.P.*, OCM Principal Opportunities Fund III GP, L.P.*, Oaktree Fund GP I, L.P.*, Oaktree Capital I, L.P.*, OCM Holdings I, LLC*, Oaktree Holdings, LLC*, Oaktree Capital Group, LLC*, Oaktree Capital Group Holdings GP, LLC*, OCM Crimson Holdings, LLC, OCM Principal Opportunities Fund IV, L.P.*, OCM Principal Opportunities Fund IV GP, L.P.*, OCM Principal Opportunities Fund IV GP, Ltd.*, Oaktree Capital Management, L.P.*, Oaktree Holdings, Inc.*, OCM FIE, LLC reported no remaining CONTANGO OIL & GAS CO shareholding in its periodic institutional filing.
In a November 30, 2017 update, Contango said it expects a one-rig program in 2018 on its Southern Delaware Basin acreage (6,775 net acres) in Pecos County, Texas, and put proved reserves at $254M PV-10 as of October 1. It also reported a borrowing base of $115M with about $79.2M drawn at September 30, 2017, 2018 oil hedges, and drilling and completion updates on the Crusader, Ragin Bull and River Rattler wells. It attributed heavy trading the day before partly to a large holder selling and partly to its removal from the S&P SmallCap 600 index. The acreage is larger than the roughly 5,000 net acres bought in 2016 (inference: it was added to since); the filing does not say how.
