Contract Award for the Freeport LNG Terminal at Freeport, Texas.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--Aug. 12, 2003

Contango Oil & Gas Company (AMEX:MCF) announced that Freeport LNG Development L.P. has signed a contract with Technip USA, a subsidiary of Technip (NYSE:TKP), for the Front End Engineering Design ("FEED") that will lead to the finalization of the EPC (engineering, procurement and construction) contract for its LNG receiving terminal to be located on Quintana Island near Freeport, Texas. Contango owns a 10% partnership interest in Freeport LNG Development L.P.

Please see Technip USA's press release, which follows and provides additional comments of Michael Smith, CEO of Freeport LNG Development, and further information about the Freeport LNG terminal project.

On Wednesday, Aug. 6, 2003, Mr. Peak made a presentation at the Enercom Conference in Denver, Colo. If you would like to listen to this presentation, please go to our Website at www.mcfx.biz for a link to the presentation or you can go directly to the presentation by using www.theoilandgasconference.com. Click on the "Webcast" and then on "Contango Oil & Gas".

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 own 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 news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties including uncertainties 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 the Company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.

Technip USA Announces Contract Award for the Freeport LNG Terminal At Quintana, Texas, USA

HOUSTON, Aug. 12 - Freeport LNG Development, L.P. and Technip USA Corporation, a subsidiary of Technip (NYSE:TKP)(Euronext:FR0000131708) have signed a contract for the Front End Engineering Design (FEED) leading to the finalization of the EPC (engineering, procurement and construction) contract for its LNG receiving terminal to be located on Quintana Island near Freeport, Texas. The FEED is expected to be completed by the end of December with the EPC phase of the project beginning in the first quarter of 2004.

Michael Smith, CEO of Freeport LNG Development, L.P., said, "Technip has considerable experience in LNG facility design and this contract continues the relationship established with Technip during their assistance in the preparation of the FERC filing documents for our terminal. The need for LNG receiving facilities is a critical factor in meeting US energy needs. We filed with FERC for our terminal earlier this year and are receiving positive feedback on our application. The contract with Technip USA is a milestone in the further development of our terminal as we target its completion by 2007."

Larry Pope, CEO of Technip USA Corporation based in Houston, Texas commented, "Technip USA is very pleased to be part of this important project. We look forward to working with Freeport LNG in helping the nation meet our natural gas supply needs. This project, executed from Technip USA's offices in Houston, Texas, represents a continuation of Technip's forty-five year history in the global LNG industry and reinforces Technip USA Corporation's position as a major provider of expertise for LNG receiving terminals in the U.S. and elsewhere in the Americas."

Smith further commented, "We plan to have facilities in place which will allow suppliers the ability to bring up to 1.5 billion cubic feet per day of gas into the country through this strategic Gulf Coast location. The natural gas will be transported through a 9.4 mile pipeline extending to Stratton Ridge, which is a major point of interconnection for a number of Texas intrastate pipeline systems. The proposed LNG marine terminal, storage, vaporization units, and natural gas pipeline will be located entirely in Brazoria County, Texas."

With a workforce of about 19,000 people, Technip ranks among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York (NYSE:TKP) and in Paris (Euronext:FR0000131708). The main engineering and business centers of Technip are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the United States, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world-class fleet of offshore construction vessels.