The company used $20.3 million of the proceeds to pay off its debt with the Royal Bank of Scotland, including principal, interest and fees. Another $20 million was used to pay off its debt with a private investment firm. The remaining $27.7 million will be used for working capital.
Kenneth Peak, chairman and CEO of Contango, said: We have over $150 million of cash on hand and $60 million of available borrowing capacity. As stated previously, our plans are to invest $109 million of our cash in a like-kind exchange for producing oil and gas assets.
