Exhibit 99.1
NEWS RELEASE
Contango Completes the Sale of its Eastern Core Fayetteville Shale Properties
JANUARY 30, 2008 – HOUSTON, TEXAS – Contango Oil & Gas Company (AMEX:MCF) announced today that the previously announced sale of its Eastern Core Fayetteville Shale properties to XTO Energy Inc. (“XTO”) (NYSE: XTO) closed on January 30, 2008. The Company received a total of approximately $128 million and intends to use the proceeds to finance the purchase of producing properties utilizing a 1031 like-kind exchange structure.
Kenneth R. Peak, the Company’s Chairman and Chief Executive Officer, said, “We have already begun the process to invest our estimated $109 million in taxable proceeds in a like-kind exchange. In the meantime, our proceeds will be invested at a rate of 3.5%. The Alta Energy team, led by Joe Greenberg, Richard Grigsby and Jenny McCarthy, has done an outstanding job of identifying this play, and executing a strategy to create enormous value in a very short time. I’m sure all Contango shareholders join me in thanking and congratulating them for our mutual success.”
Contango is a Houston-based, independent natural gas and oil company. The Company’s core business is to explore, develop, produce and acquire natural gas and oil properties primarily offshore in the Gulf of Mexico. The Company also holds investments in companies focused on commercializing environmentally preferred energy technologies. Additional information can be found on our web page atwww.contango.com.
This press release contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor “forward-looking statements” provided by of the Private Securities Litigation Reform Act of 1995, based on Contango’s current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems,
pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Contango’s operations or financial results are included in Contango’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
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Contango Oil & Gas Company | | For information, contact: |
3700 Buffalo Speedway, Suite 960 | | Kenneth R. Peak |
Houston, Texas 77098 | | (713) 960-1901 |
| www.contango.com | | |
