Under the terms of the agreement, Crimson shareholders will get an 8% premium — about $3.19 per share — to exchange their shares of company stock for shares of Contango, giving Crimson shareholders about 20% of Contango after the merger.
The $390 million price tag includes Contango assuming $244 million of debt currently held by Crimson. Contango is primarily a natural gas producer on the Gulf of Mexico shelf, while Crimson holds acreage in the Woodbine and other emerging tight oil plays in east Texas.
Major
