Contango's Affiliate Snags 2 Leases in Central Gulf of Mexico

Contango Oil & Gas' affiliated company, Republic Exploration LLC ("REX"), was the apparent high bidder on two lease blocks at the Central Gulf of Mexico Lease Sale No. 208 held on March 18, 2009. REX bid $257,777 on East Cameron 210 and $157,777 on South Timbalier 97.

An apparent high bid ("AHB") gives the bidding party priority in award of offered tracts, notwithstanding the fact that the Minerals Management Service ("MMS") may reject all bids for a given tract. The MMS review process can take up to 90 days on some bids. Upon completion of that process, final results for all AHB's will be known.