Contango affiliate apparent high bidder on Gulf of Mexico Lease Block
  by: OilOnline
  Monday, March 24, 2008

Contango Oil & Gas Company announced that its affiliated company, Republic Exploration LLC, was the apparent high bidder on one lease block at the Central Gulf of Mexico Lease Sale No. 206 held on March 19, 2008. REX bid $310,999 on Eugene Island 56.

An apparent high bid (“AHB”) gives the bidding party priority in award of offered tracts, notwithstanding the fact that the Minerals Management Service (“MMS”) may reject all bids for a given tract. The MMS review process can take up to 90 days on some bids. Upon completion of that process, final results for all AHB’s will be known.

Kenneth R. Peak, Contango’s Chairman and Chief Executive Officer, said, “Our Gulf of Mexico exploration efforts for the past year have been focused on developing our Dutch and Mary Rose discoveries, but we look forward to resuming our offshore exploration efforts by drilling between one to three new offshore exploration prospects in calendar year 2008.”

Mr. Peak continued, “At our Dutch and Mary Rose discoveries, we are on time and on budget with our platform and pipeline construction. We expect to begin producing each of our Mary Rose #1 and Mary Rose #3 wells at anticipated 8/8ths rates of 55 million cubic feet equivalent per day (“Mmcfe/d”) before the end of May 2008. Our three Dutch wells are currently producing at approximately 110 Mmcfe/d. We are drilling our Mary Rose #2 well and expect to spud our Mary Rose #4 well in the April/May time frame.”

Click here for more of Today's News Headlines