Exhibit 99.1

Contango Oil & Gas Company Announces Marc Duncan as President and Chief
Operating Officer of Contango Operators, Inc.

     HOUSTON--(BUSINESS WIRE)--June 7, 2005--Contango Oil & Gas Company
(AMEX:MCF) announced today that Marc Duncan has joined Contango in its newly
created position as President and Chief Operating Officer of Contango Operators,
Inc. (COI). COI is a wholly owned subsidiary of Contango Oil & Gas Company and
is the entity through which Contango takes direct working interests in offshore
Gulf of Mexico exploration projects. COI will also act as Operator and drill and
operate selected offshore prospects.
     Kenneth R. Peak, Chairman and Chief Executive Officer, said, "Marc has 25
years of operating experience, both domestically and internationally, and brings
a wealth of hands-on operating expertise to Contango. We are very pleased to
have Marc join our team and look forward to spudding at least two of our Gulf of
Mexico exploration prospects prior to calendar year end."
     Contango also announced that two private entities would be joining COI in
investing in offshore prospects. It is envisioned that COI will take a 50%
working interest with the other 50% being taken by the two private investors.
     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 Freeport LNG Development L.P.; and a 32%
interest in Contango Capital Partnership Management, LLC, and 25% interest in
the Contango Capital Partners Fund, L.P., which were formed to invest in the
alternative energy venture capital market with a focus on environmentally
preferred energy technologies. Additional information can be found on our web
page at www.contango.com.
     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.


     CONTACT: Contango Oil & Gas Company, Houston
              Kenneth R. Peak, 713-960-1901
              www.contango.com