Contango closes on Wyoming gas acreage purchase
Contango Oil & Gas closed a $67mn deal to acquire gas-producing assets in the Wind River basin in Wyoming from ConocoPhillips, the company announced August 31.
Contango has acquired acreage with a net production rate of around 78mn ft3/day of natural gas. Those assets have an expected production decline rate of about 5% annually over the next five years.
Contango CEO Wilkie Colyer Jr said the agreement was a sign of things to come.
“We continue to be on the lookout for similar, additional acquisition opportunities in this target-rich environment,” he said.
Wyoming is a relatively small gas producer compared with other states. The number of active wells producing natural gas as of 2019, the last full year for which the federal government has data, accounted for about 4% of the national total. Estimates from the US Geological Survey put the total estimated undiscovered, technically recoverable reserves at 2.6 trillion ft3 of natural gas and 288mn barrels of oil in Wyoming.