Contango Oil & Gas Company (NYSE MKT: MCF) announced today that the
Company had expanded its Board to seven Directors and elected Mr. Joseph
J. Romano as a Director, President and Chief Executive Officer.
Mr. Brad Juneau, owner and general manager of Juneau Exploration L.P.,
the Company’s advisor in all its exploration activities, will remain a
Director of the Company and continue to oversee the Company’s
operations. Mr. Kenneth R. Peak, the founder of the Company, remains on
a medical leave of absence.
Mr. Juneau commented, “Ken has expressed to me his desire that the
Company continue to execute its business plan with the appointment of a
permanent CEO. Ken will remain Chairman and will continue to be a
valuable player in the Company he founded and loves so much.”
Joe Romano said, “I am excited to have the opportunity to lead Contango
which has had such extraordinary success since its founding in 1999. As
an early investor and initial Director of Contango upon its founding,
and later as an investor in the Dutch-Mary Rose offshore discovery, I
have had a close association with the Company, Ken Peak and Brad Juneau
over the last dozen years. With an inventory of at least six prospective
drilling targets in the Gulf of Mexico assembled by Juneau Exploration,
the Company is well positioned to add to its offshore production.”
Mr. Romano assisted Mr. Peak in founding the Company in 1999. Mr. Romano
has worked in the energy industry since 1977. Mr. Romano served as
Senior Vice President and Chief Financial Officer of Zilkha Energy
Company until its sale in 1998 and served as President and Chief
Executive Officer of Zilkha Renewable Company until its sale in 2005. He
presently serves in various capacities in Zilkha-affiliated companies.
He is President and Chief Executive Officer of Olympic Energy Partners
which owns working interests in Contango’s Dutch and Mary Rose fields,
is President and Chief Executive Officer of ZZ Biotech, is Vice
President and Director of Laetitia Vineyards and Winery and is Vice
President of Zilkha Biomass Company. Mr. Romano served as Chief
Financial Officer, Treasurer and Controller of Texas International
Company from 1986 through 1988 and its Treasurer and Controller from
1982 through 1985. Prior to 1982, Mr. Romano spent five years working in
the Worldwide Energy Group of the First National Bank of Chicago. He
earned his BA in Economics from the University of Wisconsin in Eau
Claire and an MBA from the University of Northern Illinois.
The Board of the Company declared a special dividend of $2.00 per share
of common stock to be paid on December 17, 2012 to each holder of record
of the Company’s common stock as of the close of business on December 3,
2012. After payment of the dividend of approximately $30.4 million, the
Company anticipates having approximately $63 million in net available
cash and will continue to have no debt and $40 million of unused
borrowing capacity.
Contango is a Houston-based, independent natural gas and oil company.
The Company’s core business is to explore, develop, produce and acquire
natural gas and oil properties primarily offshore in the Gulf of Mexico.
Additional information can be found on our web page at www.contango.com.
This press release contains forward-looking statements regarding
Contango that are intended to be covered by the safe harbor
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995, based on Contango’s current expectations
and includes statements regarding acquisitions and divestitures,
estimates of future production, future results of operations, quality
and nature of the asset base, the assumptions upon which estimates are
based and other expectations, beliefs, plans, objectives, assumptions,
strategies or statements about future events or performance (often, but
not always, using words such as “expects”, “projects”, “anticipates”,
“plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”,
or stating that certain actions, events or results “may”, “will”,
“should”, or “could” be taken, occur or be achieved). Statements
concerning oil and gas reserves also may be deemed to be forward-looking
statements in that they reflect estimates based on certain assumptions
that the resources involved can be economically exploited.
Forward-looking statements are based on current expectations, estimates
and projections that involve a number of risks and uncertainties, which
could cause actual results to differ materially from those, reflected in
the statements. These risks include, but are not limited to: the risks
of the oil and gas industry (for example, operational risks in exploring
for, developing and producing crude oil and natural gas; risks and
uncertainties involving geology of oil and gas deposits; the uncertainty
of reserve estimates; the uncertainty of estimates and projections
relating to future production, costs and expenses; potential delays or
changes in plans with respect to exploration or development projects or
capital expenditures; health, safety and environmental risks and risks
related to weather such as hurricanes and other natural disasters);
uncertainties as to the availability and cost of financing; fluctuations
in oil and gas prices; risks associated with derivative positions;
inability to realize expected value from acquisitions, inability of our
management team to execute its plans to meet its goals, shortages of
drilling equipment, oil field personnel and services, unavailability of
gathering systems, pipelines and processing facilities and the
possibility that government policies may change or governmental
approvals may be delayed or withheld. Additional information on these
and other factors which could affect Contango’s operations or financial
results are included in Contango’s other reports on file with the
Securities and Exchange Commission. Investors are cautioned that any
forward-looking statements are not guarantees of future performance and
actual results or developments may differ materially from the
projections in the forward-looking statements. Forward-looking
statements are based on the estimates and opinions of management at the
time the statements are made. Contango does not assume any obligation to
update forward-looking statements should circumstances or management’s
estimates or opinions change.
