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Contango joy at Dutch treat



By Upstream staff 

Houston-based explorer Contango has hit gas at the Dutch prospect, in Eugene Island 10, in the Gulf of Mexico off Louisiana.

The company, which operates the block with a 100% stake, said a production liner has been set, electric logs run, and drilling is continuing.

It added that its independent third party engineer estimates the holds proved reserves net of 25 billion cubic feet of equivalent.

Completion and testing operations have not yet begun, but Contango hopes to bring the well on stream by the end of the year. Estimated costs to bring the well to full production status are $2.7 million.

Contango boss Kenneth Peak said: "This discovery is a superb complement to our liquefied natural gas and Fayetteville Shale business. We will need more capital but our bank borrowing base will be significantly enhanced by this discovery."


Friday, 13 October, 2006, 07:35 GMT  | last updated: Friday, 13 October, 2006, 07:35 GMT

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