Texas-based oil, gas company officially acquires Wind River Basin assets from ConocoPhillips

County 10 Photo - ConocoPhillips Lost Cabin Gas Plant, 2020

(Lysite, WY) – Contango Oil & Gas Company announced today, August 31st, the successful completion of its acquisition of low decline, conventional gas assets in the Wind River Basin of Wyoming from ConocoPhillips.

ConocoPhillips shared earlier this year that they planned to put their Wind River Basin assets on the market and a sale would only happen if the right buyer came along. In July, the Fort Worth-based independent oil and natural gas company, Contango, announced they entered into an agreement to purchase those assets with expected finalization by the end of the third quarter.

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Acquisition highlights:

  • Assets acquired are PDP-heavy assets with a net production run rate of approximately 78 Mmcfe/d (100% gas), as of the effective date of the acquisition, and an expected 5% annual decline rate over the next 5 years.
  • Significant potential for upside via Contango’s track record of optimizing cash flow and reserves on acquired assets.
  • Purchase price of $67 million, subject to customary purchase price adjustments and a June 1, 2021 effective date.

Wilkie S. Colyer, Jr., Contango’s Chief Executive Officer, commented, “We are excited to announce the closing of the acquisition of the Wind River Basin assets from ConocoPhillips. 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. We continue to be on the lookout for similar, additional acquisition opportunities in this target-rich environment.”

Contango has not returned County 10’s inquiries at this time. If and when they do, we will share additional information about this acquisition and any impacts on current employment.

Click here to learn more about Contango.

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