Contango offloads Freeport stake
Contango Oil & Gas has agreed to sell its 10% limited partnership stake in the
Freeport LNG Development for about $68 million and expects lost cash flows
of about $5 million from a production outage.
The company said it has agreed to sell its interest in Freeport, which is
engaged in developing a liquefied natural gas receiving and gasification
terminal on Quintana Island, near Freeport, Texas, to an Asian utility
company.
The Houston-based company said it will use the proceeds from the sale to
prepay its outstanding $20 million term loan from the Royal Bank of
Scotland, with the remaining funds available for working capital.
The company said production from three Dutch wells was shut-in on 19 December
due to a small leak, but was resumed on 4 January.
08 January 2008 16:30 GMT
| last updated:
08 January 2008 16:30 GMT
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