Contango Snags ConocoPhillips’ Gassy Wind River Assets for $67M

U.S. independent Contango Oil & Gas Co. plans to boost its natural gas production by more than half later this year with the acquisition of ConocoPhillips’ conventional assets in Wyoming’s Wind River Basin for $67 million.

The assets are estimated to have a net production run rate of about 78 MMcfe/d as of July 1. They are expected to increase Fort Worth, TX-based Contango’s run rate production by 57% after the deal’s planned 3Q2021 closing.

“This is a huge, conventional gas field with low decline, purchased at an attractive valuation,” Contango CEO Wilkie Colyer said. The decline rate is pegged at 5%/year over the next five years.

According to a March factsheet on the ConocoPhillips website, the Wind River operations area consists of the Madden field and Lost...