Revenue during the quarter plunged 32.58 percent to $19.58 million from $29.04 million in the previous year period.

Operating loss for the quarter was $12.84 million, compared with an operating loss of $261.45 million in the previous year period.

Allan D. Keel, the Company’s president and chief executive officer, commented "We were fortunate to find an excellent entre into the Permian Basin, on economical terms, and are excited about the high quality drilling inventory that our acreage position exposes Contango to for the foreseeable future. Even at current commodity prices, this area offers excellent returns. We spud our first well in the Southern Delaware Basin of the Permian on October 15th, targeting the Upper Wolfcamp formation, and look forward to an active 2017 program given success similar to those experienced by our offset operators. We anticipate spudding an additional two wells by the end of this year, and anticipate initial production from the first well in late December or early January. We were also fortunate to be able to raise approximately $50 million dollars in a publicly marketed equity offering during the quarter that will provide additional financial flexibility to fund the acquisition and development of our Permian position."

Days sales outstanding went up to 79 days for the quarter compared with 71 days for the same period last year.

Debt comes down significantly
Contango Oil & Gas Company has recorded a decline in total debt over the last one year. It stood at $62.46 million as on Sep. 30, 2016, down 45.48 percent or $52.11 million from $114.57 million on Sep. 30, 2015. Contango Oil & Gas Co has recorded a decline in long-term debt over the last one year. It stood at $62.46 million as on Sep. 30, 2016, down 45.48 percent or $52.11 million from $114.57 million on Sep. 30, 2015. Total debt was 16.28 percent of total assets as on Sep. 30, 2016, compared with 21.32 percent on Sep. 30, 2015. Debt to equity ratio was at 0.25 as on Sep. 30, 2016, down from 0.33 as on Sep. 30, 2015.