Contang's Chairman and CEO Enters Trading Plan to Sell Shares

Contango Oil & Gas Co.

Contango announced that its founder, Chairman and Chief Executive Officer, Mr. Kenneth R. Peak, has entered into a trading plan under SEC Rule 10b5-1 for the sale of 200,000 shares over a period of the twelve months beginning June 2009, based upon instructions in the trading plan. The sales will occur in accordance with the volume and manner of sales restrictions of SEC Rule 144. The proposed sales represent approximately 6% of the total shares beneficially owned and controlled by Mr. Peak.

In connection with the transaction, Mr. Peak said, "These are the first Contango shares I have sold since I started the Company 10 years ago. The Company is in excellent financial condition and I believe we will continue to find opportunities to add value for our shareholders. Nonetheless, at age 64 it is important for me to diversify a small percentage of my Contango investment and implement an orderly estate plan for my children and charitable organizations. My proposed stock sales under the Rule 10b5-1 trading plan are designed to provide funds for my personal estate planning while continuing to keep the vast majority of my personal net worth tied to Contango. After completion of the stock sales, I will continue to beneficially own or control 3,112,540 shares, or approximately 19% of Contango's fully diluted shares."