Contango Oil & Gas Company

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Forward Looking InformationThis presentation contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor "forward-looking statements" provided by of the Private Securities Litigation Reform Act of 1995, based on Contango’s current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", “projects”, "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses;

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Forward Looking Information

potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Contango’s operations or financial results are included in Contango’s other reports on file with the Securities and Exchange Commission.  Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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Contango’s Core BeliefsFrom Inception

The only competitive advantage in the natural gas and oil business is to be among the LOWEST COST producers

Virtually all the exploration and production industry’s VALUE CREATION occurs through the drilling of successful exploration wells

The goal is only and always value creation PER SHARE

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OK, How Low Cost Is Contango? LOE – All in (Xport, Svc Tax, Workovers, etc.)....

$1.00 Interest/Mcfe – No Debt……………………...…...

$0.00 G & A/Mcfe – 7 people - $8 million………...........

$0.30 “All-in” Cash Costs

$1.30/Mcfe

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And, What About Value Creation?

Find, Drill Aquire Capex (last 3 fiscal years)…..............$544 million

Reserves added ……………................................................400 Bcfe

F & D & A $1.36/Mcfe*

DD&A for 6 months ended December 31, 2008………..$1.12/Mcfe

*F & D Drill Bit $.78/Mcfe*Acquisition Cost $3.10/Mcfe

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Taxes Are By Far Our Biggest Cost

Our costs are about $2.50/mcfe (LOE = $1.30/mcfe; DD&A = $1.12/mcfe)

Absent dry holes (we follow successful efforts accounting), we are profitable down to about $2.25/MMbtu Henry Hub

Assuming $6.40/MMBtu NYMEX (current five year strip) we receive about $6.90/mcfe (1080 BTU gas)

Our pre-tax profit would thus be about $4.40/mcfe

We pay an effective tax rate of about 38% for Federal & State of LA taxes, or $1.70/mcfe

Leaving a net after tax profit for shareholders of about $2.70/mcfe

Through capex – IDC deductions – we can reduce tax rate…..but would rather pay taxes than drill wildcat wells we don’t like

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I’m Out on a Limb, But Bottom Is In

Lower 48 supply of natural gas peaked in Nov 2008 and is now in decline. Demand has bottomed, now increasing

According to Economics 101, when decreasing supply collides with increasing demand.......prices rise

Shale plays are the industry’s future, but need $6.00 gas to do more than “kiss your sister”…. > 15% hurdle rates

Natural gas rig count down 50% - 800 rigs and counting

Balance Sheet strength still demands a premium Opportunity abounds – We prefer buying our stock

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Of Course I’m a Bull For 2010 And Beyond

Natural gas drilling falls off the cliff in 2009– the best cure for low prices is really low prices

Annual natural gas depletion – 25% - 30% and increasing: First year shale gas depletion is 60% - 80% No nukes Increasing constraints on coal; Cap & Trade; TVA Coal

Spill National Nimbyitis – more acreage off-limits/more

permits/less drilling/ less supply Ukraine/Gazprom annual “disputes” Natural gas is a weather commodity - like corn, but

without the subsidies Crude: Weak dollar/volatile world – If you don’t love

Chavez, Putin, et al. you’re not thinking clearly

And the 800 pound gorilla?....No expensing of IDC – If you don’t love our Congress you’re not thinking

clearly

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FY 2009 Capex Program

* If successful at EI 56 West, we will need to spend another $6.4 million to complete.

* The economic equivalent of about a 1/3 for a 1/4 promote: Pay 100% W.I for 75%: 75% x .833 = 62.5%.

THIS CAPEX PROGRAM GENERATES $26 MILLION OF IDC WHICH REDUCES TAXES BY ABOUT $9 MILLION

Well 8/8th DHC Cost Contango DHC W.I.

Net DHC $ Contango NRI(inclusive of REX and COE)

Status

Dutch #4 $15.0 million 47.05 % $ 7.0 million 38.12 % Done

WD 77 $ 7.0 million 100.00 % $ 7.0 million Dry Hole Done

EI 56 W $12.0 million 100.00 % $12.0 million 59.45 % * Drilling

TOTAL $34.0 million   $26.0 million  

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Operations RecapProduction (BCFE)

Q-1 (A) Q-2 (A) Q-3 (E) Q-4 (P) 5.7 5.6 6.3 8.0Q1/Q2: Impacted by Hurricane Ike and

related downstream shut-ins/curtailments of pipelines/processing plants

Currently flowing at 85 Mmcfed net to Contango

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SEC PV-10 RecapJun. to Mar. Jun. to Mar.

Jun. 30 Sep. 30 Dec. 31 Mar. 31 $ Change % Change

$ / Mcf 14.15$ 7.43$ 5.90$ 3.82$ (10.33)$ -73.00%$ / Bbl (Oil) 142.58$ 103.40$ 42.65$ 47.67$ (94.91)$ -66.57%$ / Bbl (NGL) 98.00$ 70.45$ 31.22$ 34.76$ (63.24)$ -64.53%

$ / Mcfe 15.27 8.83$ 5.92$ 4.42$ (10.85)$ -71.05%

Mmcf 291,568 288,954 287,835 281,742 (9,826) -3.37%MBbl's (Oil) 5,479 5,434 5,304 5,180 (299) -5.46%MBbl's (NGL) 7,439 7,387 7,408 7,239 (200) -2.69%

Mmcfe 369,076 365,880 364,107 356,256 (12,820) -3.47%

Pre-tax PV-10 ('000) 3,183,843$ 1,779,057$ 1,221,330$ 828,701$ (2,355,142)$ -73.97%

Stock price 92.92$ 53.98$ 56.30$ 39.20$ (53.72)$ -57.81%

Fully diluted shares 17,675,413 17,576,959 17,020,847 16,514,147 (1,161,266) -6.57%

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Stock Repurchase Program Since September 1, 2008, we have purchased 1,224,354 shares for $51.8 million

- $ 42.30/ share

We now have 15.8 million shares outstanding and 16.5 million shares fully diluted

Using Mar 31, 2009 reserve report, each share of common stock represents 22 Mcfe/share

To date have purchased 26.3 Bcfe of proved developed reserves in the ground at a price of $2.23/Mcfe

THESE ARE ALL PROVED DEVELOPED…..NO PUD’s

THESE ARE HIGH MARGIN MCFE’S

THESE RESERVES HAVE A +/- 10 R/P

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Net Capital Raised Preferred Series Capital Raised

Seed Capital $5.0 millionSeries A $2.5 millionSeries B $5.0 millionSeries C $8.0 millionSeries D $10.0 millionSeries E $30.0 million Total $60.5 million

Shares Purchased Amount3,945,187 $64.7 million

Average price paid is $16.40 / share

Query: How many publically traded companies have “negative” net capital?

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Run a Screen of E & P Companies with Following Traits

22 Mcfe’s of proved developed reserves per share No debt 7 employees LOE + G&A + INTEREST at $1.30/mcfe Wildcat exploration upside Active share repurchase program Incentive Alignment - Management owns 23% of

Company

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America’s Energy Company MCF IS NATURAL GAS