Contango Updates Status of Freeport LNG Project.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Nov. 10, 2003

Contango Oil & Gas Company (AMEX:MCF) announced that the Federal Energy Regulatory Commission ("FERC") has concluded in a draft Environmental Impact Statement ("EIS") that the approval of Freeport LNG Development, LP's ("Freeport LNG") proposed liquefied natural gas ("LNG") import terminal facilities, with the adoption of recommended mitigation measures, would have limited adverse environmental impact and would be an environmentally acceptable action. Freeport LNG expects to receive a final EIS and final FERC approval for its application to build a 1.5 Bcf per day LNG receiving terminal near Freeport, Texas, in early 2004. Contango owns a 10% limited partnership interest in Freeport LNG.

The EIS provides for a comment period that runs through Dec. 29, 2003. FERC will conduct a public meeting to give interested parties an opportunity to comment on the draft EIS. The meeting will be held on Dec. 9, 2003.

Kenneth R Peak, Contango's chairman and chief executive officer, said, "Contango has investments in LNG, in the deep shelf and deep water of the Gulf of Mexico, and onshore south Texas. In the deep shelf, we have two wells that we expect to begin drilling prior to year-end 2003, and we have just been awarded three blocks in the deep water of the Gulf of Mexico. Onshore in south Texas, we have five separate and independent exploration plays in various stages of execution."

Contango is a Houston-based, independent natural gas and oil company. The Company explores, develops, produces and acquires natural gas and oil properties primarily onshore in the Gulf Coast and offshore in the Gulf of Mexico. Contango also owns a 10% partnership interest in a proposed LNG terminal in Freeport, Texas. Additional information can be found on our Web page at www.mcfx.biz.

This press release contains forward-looking statements that involve risks and uncertainties, and actual events or results may differ materially from Contango's expectations. The statements reflect Contango's current views with respect to future events that involve risks and uncertainties, including those related to successful negotiations with other parties, oil and gas exploration risks, price volatility, production levels, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in Contango's publicly available reports filed with the Securities and Exchange Commission.