Contango to Spud Prospect at Vermillion 155 Block

Repairs are proceeding as planned on Contango's recently ruptured 20" pipeline that runs from our production platform at EI-11 to EI-63 and we are on target to complete the work by the end of March 2010. Contango's current net production is approximately 31 million cubic feet equivalent per day.

Additionally, the Company has taken a farm-in on block Vermillion 155 and expects to spud this prospect prior to month's end. This prospect has an estimated dry hole cost of approximately $12 million and the Company has a 100% working interest.