Crimson Exploration (CXPO -3.4%) announces its first Buda formation oil discovery at a gross initial production rate of 859 boe/day and a 30-day rate of 797 boe/day. The well is located in CXPO's Booth-Tortuga Area, where the company has ~10,140 gross acres prospective for the Buda formation.
Contango Oil & Gas (MCF) agrees to acquire Crimson Exploration (CXPO) in an all-shares deal touted as a merger and worth ~$390M. MCF says the deal will enhance its portfolio of Gulf of Mexico offshore assets as well as liquids-rich plays onshore in Texas, complemented by some of Crimson's unconventional plays. CXPO +15.5% premarket.
Crimson Exploration (CXPO +11.2%) is upgraded to Buy from Hold at Stifel Nicolaus, which says underperformance over the past six months has created an attractive entry point below CXPO's liquidation value. The firm thinks the return of drilling in the Woodbine, expected startup of the Covington-Upchurch well, and release of 2013 guidance should help raise the stock.
One small energy company benefiting from BHP's acquisition of Petrohawk (HK +62%) today is Crimson Expoloration (CXPO +14%). The company operates in the same onshore Gulf Coast regions as Petrohawk, and is also a player, albeit minor, in the in the enormous Eagle Ford shale oilfields.