Contango Oil & Gas to pay down revolver with stock offering proceeds

By Marisa Wong

Morgantown, W.Va., July 21 – Contango Oil & Gas Co. intends to repay amounts outstanding under its revolving credit facility using proceeds from an offering of common stock, according to a press release.

The company launched a public offering of stock on Thursday and said it expects to use the proceeds to fund its acquisition of undeveloped Southern Delaware Basin acreage from a third party and related drilling costs. Pending that use, the proceeds will be applied toward the revolver paydown.

If the acquisition does not close, however, the company will use the proceeds for general corporate purposes.

Houston-based Contango is an oil and natural gas exploration company.

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