Tuesday, January 8, 2008
Contango Announces The Sale Of Its Limited Partnership Interest In Freeport LNG Development, LP For Approximately $68 Million
8 January 2008
Dow Jones News Service
Contango Oil & Gas Co. (MCF) said Tuesday that it agreed to sell its 10% limited partnership interest in Freeport LNG Development LP to a major Asian utility company for about $68 million.
The Houston natural gas and oil company said it will use the proceeds to prepay the outstanding $20 million term loan from the Royal Bank of Scotland, with the remaining funds available for working capital.
The company said it owns the 10% limited partnership interest in Freeport through its wholly owned unit, Contango Sundance Inc.
The sale is subject to the purchaser's board approval.
Freeport is involved in developing a liquefied natural gas receiving and gasification terminal on Quintana Island, near Freeport, Texas.
Shares of Contango Oil & Gas were up $1.23, or 2.3%, at $55.06 in recent trading.
