Exhibit 99.1


     Contango Announces Successful Well at Its Mary Rose Prospect

    HOUSTON--(BUSINESS WIRE)--Oct. 2, 2007--Contango Oil & Gas Company
(AMEX:MCF) announced a successful well at its Mary Rose prospect
located in Louisiana state waters at State Lease No. 18640. The Mary
Rose #1 well is located approximately six miles off the coast of
Louisiana and was drilled by Contango Operators, Inc. ("COI"), a
wholly-owned subsidiary of the Company.

    As of June 30, 2007, proved reserves from our Dutch and Mary Rose
prospects were 226 billion cubic feet equivalent ("Bcfe") (65 Bcfe net
to Contango). As of October 2, 2007, proved reserves from our Dutch
and Mary Rose prospects were 380 Bcfe (109 Bcfe net to Contango), a
68% increase, as estimated by the Company's independent third party
engineer. As of June 30, 2007, probable reserves from our Dutch and
Mary Rose prospects were 205 Bcfe (59 Bcfe net to Contango). As of
October 2, 2007, probable reserves from our Dutch and Mary Rose
prospects were 220 Bcfe (63 Bcfe net to Contango), a 7% increase, also
as estimated by the Company's independent third party engineer. Total
proved reserves plus probable reserves were 431 Bcfe at June 30, 2007
(124 Bcfe net to Contango), and 600 Bcfe at October 2, 2007 (173 Bcfe
net to Contango), a 39% increase.

    During the quarter ended September 30, 2007, production at our
Dutch #1 and Dutch #2 wells was constrained for 55 of the 92 days, due
to a combination of downstream mechanical problems, construction
needed to expand capacity, or weather. The Dutch #1 and #2 wells are
currently producing at a combined rate of 65 million cubic feet
equivalent per day ("Mmcfe/d") through the Eugene Island 24 production
platform. The Dutch #3 well is expected to begin producing by
mid-November 2007, which we expect will increase our combined
production rate to an estimated 110 Mmcfe/d.

    COI has an approximate 15.7% working interest and Republic
Exploration LLC ("REX"), a subsidiary in which the Company owns a
42.7% interest, has an approximate 55.7% working interest in our Mary
Rose discovery or a combined working interest net to Contango of
approximately 39.5%. The net revenue interests to COI and REX are
approximately 11.3% and 39.9%, respectively, or a combined net revenue
interest net to Contango of approximately 28.3%.

    Kenneth R. Peak, Contango's Chairman and Chief Executive Officer,
said, "Our Dutch wells have necessitated a number of modifications to
expand downstream production handling, pipeline and gas processing
capacity. We expect the last of these modifications to be completed by
mid-November. Our current plans are to complete and production test
our Mary Rose #1 well by the end of October. The rig is then scheduled
to go to the shipyard for an estimated 30 - 45 days, at which point in
time we will spud our Mary Rose #2 well and immediately thereafter
spud our Mary Rose #3 well."

    Mr. Peak continued, "I am very proud of what the Contango and REX
teams have accomplished and look forward to continue developing our
Dutch and Mary Rose discoveries as well as the spudding of at least
two Gulf of Mexico wildcat exploration wells in calendar year 2008."

    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 and onshore in the Arkansas Fayetteville Shale. The
Company also owns a 10% interest in a limited partnership formed to
develop an LNG receiving terminal in Freeport, Texas, and holds
investments in companies focused on commercializing 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 ("SEC").

    The SEC permits oil and gas companies to disclose in their filings
with the SEC only "proved" reserves, which are reserve estimates that
geological and engineering data demonstrate with reasonable certainty
to be recoverable in future years from known reservoirs under existing
economic and operating conditions. Contango uses in this press release
the term "probable" reserves, which SEC guidelines prohibit from being
included in filings with the SEC. Probable reserves are unproved
reserves which are more likely than not to be recoverable. Estimates
of probable reserves which may potentially be recoverable through
additional drilling or recovery techniques are by their nature more
uncertain than estimates of proved reserves and accordingly are
subject to substantially greater risk of not actually being realized
by the Company.


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