Contango Announces Sale of Alta Investment For Net Proceeds of $29 Million

Contango Oil & Gas Company

announced today that Alta Energy had recently signed a contract to sell its interest in over 67,000 acres in the Kaybob Duvernay in Alberta, Canada. Proceeds from the sale are expected to be approximately $29 million, net to the Company. The sale is expected to close in October after satisfaction of a number of closing conditions. Joseph J. Romano, the Company's Chairman and Chief Executive Officer, said, “Alta Resources and its Chairman, Joseph Greenberg, have again been very successful in developing a major new resource and the Company is fortunate to be an early investor in this venture. The Company expects to use its net proceeds from the sale to further pay down indebtedness of the Company following our merger with Crimson Exploration which we hope to close in early October.” Mr. Romano continued, “We continue to make great progress with our merger plans with Crimson Exploration and have recently filed responses to comments provided by the U.S. Securities and Exchange Commission to the draft Joint Proxy Statement previously filed with the Commission.” Contango is a Houston-based, independent natural gas and oil company. The Company's business is to explore, develop, produce and acquire natural gas and oil properties onshore and offshore in the shallow waters of the Gulf of Mexico. Additional information can be found on our web page at www.contango.com.