On-shore drilling program of Contango with its joint venture partner, Patara Oil & Gas, is currently producing approximately 3.2Mmcfed, net to Contango, from five wells. Three additional wells have been logged and are waiting to be fracture stimulated while another two wells are drilling ahead.
The company said that they have invested approximately $12.7m in this drilling program. Based on results till date, and using the current received gas price of $3.30 per thousand cubic feet equivalent, the current off-shore production is approximately 81mmcfed, net to Contango.
Kenneth Peak, chairman and CEO of Contango, said: “Disappointment seems like too much of an understatement for one dry hole, let alone two. Stepping back though, we are one for three in this year’s exploration program with a fourth well drilling (Eloise South) and one more wildcat exploration well – our on-shore south Texas prospect – planned prior to the end of this fiscal year, June 30, 2010.”
Houston-based independent natural gas and oil company Contango explores, develops, produces and acquires natural gas and oil properties primarily offshore in the Gulf of Mexico.
