Contango Reports Year-End Results

Contango Oil & Gas Company (NYSE MKT: MCF) reported natural gas and oil sales from continuing operations for the fiscal year ended June 30, 2012 of approximately $179.3 million, compared to $201.7 million for the same period last year. The Company reported net income attributable to common stock for the year ended June 30, 2012 of approximately $58.4 million, or $3.79 per basic and diluted share, which included a loss from discontinued operations of approximately $0.8 million or $0.05 per basic and diluted share, related to the sale of our Conterra Company and Rexer assets. This compares to net income attributable to common stock for the year ended June 30, 2011 of approximately $65.0 million, or $4.15 per basic and $4.14 per diluted share, which included a gain from discontinued operations of approximately $0.6 million, or $.04 per basic and diluted share, related to the sale of our Joint Venture Assets with Conterra Company, our Rexer assets and the distribution of Contango ORE, Inc.

For the three months ended June 30, 2012, natural gas and oil sales from continuing operations were approximately $39.8 million, down from $48.9 million for the three months ended June 30, 2011. Contango had net income attributable to common stock of approximately $9.3 million, or $0.61 per basic and diluted share, compared to net income attributable to common stock for the three months ended June 30, 2011 of approximately $17.5 million, or $1.12 per basic and diluted share.

For the remainder of fiscal year 2013, our capital expenditure budget calls for us to invest approximately $146.7 million. Of this, we expect to invest approximately $83.0 million, net to Contango, to drill four wildcat exploration wells in the Gulf of Mexico (which includes Eagle and Fang which were spud in July 2012). We also plan to invest approximately $7.7 million in Alta Energy Partners, LLC and up to $41.2 million in Exaro Energy III. Additionally, we have budgeted to invest $14.8 million to complete payment on several capital projects, leasehold costs and rental payments. As of August 29, 2012, we had no debt and approximately $120 million in net available cash.

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