Houston-based Contango will gain about a 50% interest and operatorship in 12,100 gross acres (about 5000 net) in western Pecos County in Texas in return for a payment of up to $25 million.
The price is split between $10 million cash up front, a $10 million drilling carry and up to $5 million in bonus payments depending on well results.
Contango plans to target the Wolfcamp A and B intervals as well as the Bone Spring formation on the acreage beginning later this year.
The
