Contango Oil & Gas Company (NYSE MKT:MCF) (“Contango” or the “Company”)
today announced that it has priced a public offering of 5,000,000 shares
of its common stock for total gross proceeds (before the underwriting
discount and estimated expenses) of $50 million. The underwriters have
an option for 30 days to purchase up to an additional 750,000 shares of
common stock from the Company. Proceeds from the offering are expected
to be used to fund the purchase price of the Company’s recently
announced acquisition of undeveloped Southern Delaware Basin acreage
from a third party (the “Acquisition”) and drilling costs associated
with the initial development thereof. Pending such use, the Company
intends to use the proceeds of the offering to repay amounts outstanding
under its revolving credit facility, which will be reborrowed from time
to time. If the Acquisition does not close, the Company intends to use
the net proceeds for general corporate purposes.
RBC Capital Markets, SunTrust Robinson Humphrey and Seaport Global
Securities are acting as joint book-running managers for the offering.
The offering is expected to close on July 27, 2016, subject to customary
closing conditions.
The offering will be made only by means of a prospectus supplement and
the accompanying base prospectus, copies of which may be obtained on the
Securities and Exchange Commission’s website at www.sec.gov.
Alternatively, the underwriters will arrange to send you the prospectus
supplement and related base prospectus if you request them by contacting:
RBC Capital Markets, LLC
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SunTrust Robinson Humphrey, Inc.
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Attn: Equity Syndicate
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Attn: Prospectus Department
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200 Vesey Street, 8th Floor
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3333 Peachtree Road NE, 9th Floor
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New York, New York 10281-8098
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Atlanta, GA 30326
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Telephone: 877-822-4089
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Telephone: 404-926-5744
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Email: equityprospectus@rbccm.com
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Email: strh.prospectus@suntrust.com
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Seaport Global Securities LLC
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360 Madison Avenue, 21st Floor
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New York, NY 10117
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Telephone: 646-264-5629
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Email: amcadams@seaportglobal.com
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This press release is neither an offer to sell nor a solicitation of an
offer to buy any securities, nor shall there be any sale of any such
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The securities will be offered and sold pursuant to an
effective registration statement previously filed with the Securities
and Exchange Commission.
Contango Oil & Gas Company is a Houston, Texas based, independent energy
company engaged in the acquisition, exploration, development,
exploitation and production of crude oil and natural gas offshore in the
shallow waters of the Gulf of Mexico and in the onshore Texas Gulf
Coast and Rocky Mountain regions of the United States. Additional
information is available on the Company's website at www.contango.com.
This press release contains forward-looking statements regarding
Contango that are intended to be covered by the safe harbor
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995, based on Contango's current expectations
and includes statements regarding other expectations, beliefs, plans,
objectives, assumptions, strategies or statements about future events or
performance (often, but not always, using words such as “expects”,
“projects”, “anticipates”, “plans”, “estimates”, “potential”,
“possible”, “probable”, or “intends”, or stating that certain actions,
events or results “may”, “will”, “should”, or “could” be taken, occur or
be achieved). Forward-looking statements are based on current
expectations, estimates and projections that involve a number of risks
and uncertainties, which could cause actual results to differ materially
from those, reflected in the statements. These risks include, but are
not limited to: the risks of the oil and gas industry (for example,
operational risks in exploring for, developing and producing crude oil
and natural gas; risks and uncertainties involving geology of oil and
gas deposits; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to future production, costs and
expenses; potential delays or changes in plans with respect to
exploration or development projects or capital expenditures; health,
safety and environmental risks and risks related to weather such as
hurricanes and other natural disasters); uncertainties as to the
availability and cost of financing; fluctuations in oil and gas prices;
risks associated with derivative positions; inability to realize
expected value from acquisitions; inability of our management team to
execute its plans to meet its goals; shortages of drilling equipment,
oil field personnel and services; unavailability of gathering systems,
pipelines and processing facilities and the possibility that government
policies may change or governmental approvals may be delayed or
withheld. Additional information on these and other factors which could
affect Contango's operations or financial results are included in
Contango's Annual Report on Form 10-K and other reports on file with
the Securities and Exchange Commission. Investors are cautioned that any
forward-looking statements are not guarantees of future performance and
actual results or developments may differ materially from the
projections in the forward-looking statements. Forward-looking
statements are based on the estimates and opinions of management at the
time the statements are made. Contango does not assume any obligation to
update forward-looking statements should circumstances or management's
estimates or opinions change.
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