Contango Oil & Gas Co. completed its acquisition of ConocoPhillips Co.’s Wind River Basin asset for $67 million in cash, the Fort Worth, Texas-based company said in a release on Aug. 31.
“We feel fortunate to have been able to acquire these PDP-heavy assets at a discount to the proved producing reserve value and believe that we can further enhance the value of the assets through Contango’s track record of optimizing cash flow and reserves on acquired assets,” commented Contango CEO Wilkie S. Colyer Jr. in the release.
Contango’s acquisition of the ConocoPhillips Wind River Basin position, previously announced in early July, comprises of low decline, conventional gas assets in Wyoming. The assets had a net production run rate, as of the transaction July 1 effective date, of approximately 78 MMcfe/d—roughly 100% gas. Contango added it expects a 5% annual decline rate over the next five years.
“We continue to be on the lookout for similar, additional acquisition opportunities in this target-rich environment,” Colyer added the release on Aug. 31.
The acquisition from ConocoPhillips follows a merger agreement by Contango in June with Independence Energy LLC, built and managed by KKR’s Energy Real Assets team, to become KKR’s primary platform for pursuing upstream oil and gas opportunities. The transaction with Independence is expected to close by year-end 2021.
Recommended Reading
Ecopetrol Closes $452MM Deal for Repsol’s Interests in Colombian Block
2025-02-06 - Ecopetrol has completed a deal with Repsol Colombia Oil & Gas Ltd. to acquire its 45% participation interest in CPO-09 Block—assets GeoPark Ltd. had originally proposed buying.
TotalEnergies Closes $1.4B Acquisition of Malaysia’s SapuraOMV
2024-12-10 - TotalEnergies acquired SapuraOMV’s main assets in blocks SK408 and SK310, both located offshore Sarawak in Malaysia.
Ecopetrol Buys Repsol Asset Out from Under GeoPark
2024-12-30 - GeoPark Ltd. said Ecopetrol has exercised its preemptive to acquire Repsol Colombia O&G Ltd., which holds a 45% non-operating working interest Block CPO-9.
Biden Blocks Japan’s Nippon Steel from Buying US Steel for $14.9B
2025-01-03 - President Biden cited national security concerns in his decision, but Nippon Steel and U.S. Steel said the decision ignored the law and was motivated by politics.
GeoPark Ends Plans to Purchase Repsol’s Colombian Assets
2025-01-15 - Repsol’s partners exercised their rights to acquire Repsol Colombia O&G Ltd., which included interest in CPO-9 Block and SierraCol Energy Arauca LLC, after the purchase was announced.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.