Contango Oil & Gas Company announced that Freeport LNG Development, L.P. (FLNG), in which Contango holds a 10 percent partnership interest, has closed a $383 million private placement note issuance. The funds from the notes will be used to fund the construction of Phase I of FLNG's liquefied natural gas regasification terminal located near Freeport, Texas. Phase I will have a send-out capacity of 1.75 billion cubic feet per day. Natural gas will be transported through a 9-mile pipeline to Stratton Ridge, Texas, a major point of interconnection with the Texas intrastate gas pipeline system. The terminal's Phase I capacity has been sold to ConocoPhillips and The Dow Chemical Company. Construction is expected to be completed by January 2008.
