Contango buys up Dutch and Mary Rose interest

Jan. 7, 2008

Contango Oil & Gas Co. has purchased an additional 8.33% working interest and 6.667% net revenue interest in the Dutch discovery (Eugene Island block 10) and an additional average 9.11% working interest and approximately 6.667% net revenue interest in the Mary Rose discovery (Louisiana state leases) from three different companies for $200 million.

Offshore staff

HOUSTON -- Contango Oil & Gas Co. has purchased an additional 8.33% working interest and 6.667% net revenue interest in the Dutch discovery (Eugene Island block 10) and an additional average 9.11% working interest and approximately 6.667% net revenue interest in the Mary Rose discovery (Louisiana state leases) from three different companies for $200 million. The estimated proved reserves purchased were 29 bcfe; proved and probable were 38.2 bcfe.

Contango plans to drill and complete two additional Mary Rose wells by mid-2008. Production will be directed through a platform in Eugene Island block 11 at an initial rate of 250 MMcf/d of gas.

01/07/2008