Contango Oil & Gas Co. is set to expand its footprint in the Big Horn, Permian and Powder River basins after agreeing to purchase bank-owned liquidated assets for $58 million.


Under the purchase and sale agreement announced Monday, the Fort Worth, TX-based independent is to acquire around 7,500 boe/d of production, 18.3 million boe of proved developed producing reserves and 182,000 net acres held by production. Production from the acquired assets is liquids weighted at more than 55% oil and natural gas liquids (NGL).

“This opportunity became actionable as a result of our proprietary pipeline of assets owned by non-natural owners, and our hope is that, as in this case, sellers view us as a solution provider as much as they do a counterparty in looking for a new home for...