Contango finalises Freeport sale
Contango Oil & Gas said it completed sale of its 10% limited partnership
interest stake in the US Gulf Coast's Freeport Liquefied Natural Gas
development to Turbo LNG even as the wildcatter indicated it wants to buy
new oil and gas properties.
The deal with the Osaka Gas affiliate - and which netted the company a total
of $68 million - closed today, Contango said.
Specifically, Contango said it used $20.3 million of the proceeds to pay off
debt with the Royal Bank of Scotland. Another $20 million was used to pay
off debt with a private investment company. The balance of the funds it
raised from the stake sale will be used for working capital.
“We have over $150 million of cash on hand and $60 million of available
borrowing capacity and our plans are to invest $109 million of our cash in a
like-kind exchange for producing oil and gas assets,” Kenneth Peak,
Contango’s chief executive said.
The US explorer did not say if the properties it will acquire are onshore or
offshore.
05 February 2008 20:48 GMT
| last updated:
06 February 2008 07:38 GMT
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