Energy companies Contango Oil & Gas Co. (NYSE: MCF) and Crimson Exploration Inc. (Nasdaq: CXPO) are merging in a deal valued at $390 million, in the latest energy transaction.

Through the all-stock deal, Crimson will become a subsidiary of Contango. Under the terms of the transaction, each share of Crimson’s stock will be converted into about 0.08 shares of Contango stock, which will give Crimson shareholders a 20.3 percent stake in the combined company. Contango is assuming $244 million in Crimson’s debt as part of the agreement.

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