HOUSTON, April 02, 2018 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American:MCF) announced today that it has sold its operated Eagle Ford Shale assets located in Karnes County, Texas to an independent oil and gas company for $21 million. The divestiture closed on Wednesday, March 28 and included approximately 1,500 gross (1,050 net) acres. Production from the sold assets was approximately 123 barrels of oil equivalent (Boe; 95% oil) per day. The cash proceeds from this transaction will be used to pay down outstanding borrowings under our revolving credit facility and for general corporate purposes, including development of our Southern Delaware Basin position.

Allan D. Keel, the Company’s President and Chief Executive Officer, said “This asset accounted for a little over 1% of our current production and only 2% of our proved developed year-end SEC reserves. As a result, no unscheduled adjustment to the borrowing base under our credit facility was required. The sale represents an acceleration of value as it was not likely to be developed by us in the near future as we continue to focus on our Southern Delaware Basin position. Due to the excellent rates of return expected from the Delaware Basin in this price and cost environment, and our conservative philosophy on funding our capital program, we were pleased to be able to obtain additional liquidity to continue to develop that acreage.”

Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Wyoming, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties in the Texas and Rocky Mountain regions of the United States. Additional information is available on the Company's website at http://www.contango.com.