HOUSTON, Dec. 20, 2019 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American: MCF) announced the execution of agreements with a select group of institutional and accredited investors, including certain funds and accounts advised by T. Rowe Price Associates, Inc., to sell 19,000,000 shares of common stock in a private placement. Concurrently with the common stock offering, the Company entered into agreements with affiliates of John C. Goff, Chairman of the Board, Wilkie S. Colyer, Jr., President and CEO of the Company, and W. Farley Dakan, Senior Vice President of Corporate Development of the Company, to sell 2,340,000 shares of Series C preferred stock, which rank pari passu with the Company’s common stock and which will automatically convert into common stock upon approval of the Company’s shareholders. The Company expects to receive gross proceeds from the equity capital raise of $53.35 million, which it intends to use for general corporate purposes, including capital expenditures under the Company’s concurrently announced Joint Development Agreement with Juneau Oil & Gas, LLC. The closing is expected to occur on December 23, 2019.

Wilkie S. Colyer, Contango’s President and CEO, said “We are excited to welcome T. Rowe Price as an institutional investor, and we are appreciative of the continued support of many of our existing shareholders as well. To be able to raise capital in what is a very challenging environment for our industry is a testament to the quality of our shareholder base and is a competitive advantage for Contango.”

Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma and Wyoming and to use that cash flow to explore, develop, exploit, increase production from and acquire crude oil and natural gas properties in West Texas, the Texas Gulf Coast, Oklahoma and the Rocky Mountain regions of the United States.