Contango Oil

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Contango Oil Gas Company
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Forward Looking Information

• The following presentation contains
  forward-looking statements and is made
  pursuant to the safe harbor provision of the
  Private Securities Litigation Reform Act of 1995.
  Oil and gas activities are subject to risks and
  uncertainties inherent in the exploration,
  development, operation and marketing of oil and
  natural gas. These risks include, but are not
  limited to, volatility of products, prices,
  uncertainties in reserve estimates, drilling
  risks, operations and production risks and
  environmental issues. Results could vary
  materially from the forward-looking information.
  You are cautioned that such forward-looking
  statements should be read in conjunction with the
  available company information, including the most
  recent Form 10-K and Form 10-Q.

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Probable Reserves
The SEC permits oil and gas companies to
disclose in their filings with the SEC only
"proved" reserves, which are reserve estimates
that geological and engineering data demonstrate
with reasonable certainty to be recoverable in
future years from known reservoirs under existing
economic and operating conditions. Contango uses
in this press release the term "probable"
reserves, which SEC guidelines prohibit from
being included in filings with the SEC. Probable
reserves are unproved reserves which are more
likely than not to be recoverable. Estimates of
probable reserves which may potentially be
recoverable through additional drilling or
recovery techniques are by their nature more
uncertain than estimates of proved reserves and
accordingly are subject to substantially greater
risk of not actually being realized by the
Company.
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The Big Picture

• Annual Natural Gas Depletion 35 and increasing
• Record number of wells drilled but flat
  production
• No nukes/increasing constraints on coal (viz
  TXU)
• National Nimbyitis less LNG / less Drilling /
  less supply
• Ethanol Growing natural gas consumer 1 of
  consumption?
• Canada - 4.50 Mcfe FD costs more than 2X in 5
  years
• New Mexico Canary in the Rockies
• Hurricanes
• An ever growing world economy
• LEAST but not LAST You got to love Al Gore
• LAST but not LEAST
• Query Why has the rig count continued to
  surprise on the low side?
• Answer FD costs are higher than the industry
  can afford. i.e. 6 gas is not high enough?

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The Contango Story

• Started Fall 1999
• Since inception 30 million net capital raised
• At April 10/ 6 million of cash/ 35million of
  debt/ 15 million of borrowing availability.
• At December 31, 2006 121.5 million SEC PV-10
• Six employees
• 15.9 million shares outstanding/16.9 million
  shares fully diluted - compared to 11.5 and 16.7
  million shares at June 30, 2001.
• 30 shareholders own 75 of stock
• 24 owned/ controlled by Board of Directors and
  Officers

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Contangos Drivers

• 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
  industrys value creation occurs through the
  drilling of successful exploratory wells
• Maximize value creation- PER SHARE

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MCF IS FOR NATURAL GAS BULLS ONLY

• LNG
• Fayetteville Shale
• Deep Shelf GOM Exploration
• R/Ps 50 Years/25 Years/ 2.5 Years
• No Hedges- Full commodity price exposure-
• DOWN and up

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LNG

• Long term annuity
• Start-up Q-1 2008 First grassroots plant in 30
  years
• Funding in place for Phase I and mini Phase II
• Plant cost- 830 million
• MLP - Able

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Fayetteville Shale

• 44,000 net Fayetteville Shale mineral acres to
  Alta Group (31,000 Net BPO to MCF)
• Still EARLY in learning curve, but
• Access to technology is now a commodity
• Precision horizontal drilling with longer legs
• Multiple well stimulation techniques
• 7 wells drilled-Lessons Learned
• Rig
• Supervision
• Learning curve
• Contango to become deeply involved in operations
• Move North
• Current Operations - 5 well rig contract plus 2
  outside operated

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Highlight of Fayetteville Shale Activity
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Gulf of Mexico

• 72 GOM blocks
• 4300 blocks 3-D seismic
• Dutch Mary Rose
• Proved 158 Bcfe (46 Bcfe net to Contango)
• Probable 266 Bcfe (77 Bcfe net to Contango)
• A lot of folks are leaving the Dead Sea
• Contangos constraints are capital and people
  not ideas

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Contango Alternative Energy
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Americas Energy Company
MCF IS NATURAL GAS