The company’s independent third party engineer estimates this well to have 8/8ths proved reserves of 48 billion cubic feet of natural gas and 1.2 million barrels of condensate, approximately 55 billion cubic feet equivalent (bcfe), or 37.5bcfe net to Contango’s 68% net revenue interest.
Production is expected to begin this fall at an estimated rate of 15 million cubic feet equivalent per day (mmcfed), net to Contango.
Estimated net costs to Contango, to acquire, drill, complete, and bring this well to full production status are approximately $26.5 million.
Contango chairman and CEO Kenneth Peak said that the company expects this discovery will replace its production for the fiscal year ended 30 June 2011.
Contango is a Houston-based, independent natural gas and oil company.
