Exhibit 99.1

    Contango Announces Production Test Results at its Mary Rose #1 Discovery
                             and Updates Operations

     HOUSTON--(BUSINESS WIRE)--Nov. 6, 2007--Contango Oil & Gas Company
(AMEX:MCF) announced today that its Mary Rose #1 well in Louisiana state waters
at State Lease No. 18640 has been successfully completed and production tested
at a rate of approximately 25 million cubic feet equivalent per day ("Mmcfe/d").
The Company's net revenue interest in Mary Rose #1 is approximately 28%,
inclusive of its 42.7% investment in Republic Exploration LLC ("REX").

     The Mary Rose #1 well is expected to begin producing in the spring of 2008
to a platform to be set at Eugene Island 11 that is currently under
construction. Platform and pipeline installation are expected to begin in
February 2008. The platform and pipeline have been designed with a capacity of
300 million cubic feet per day ("Mmcf/d") and 6,000 barrels of oil per day
("Bbls/d"). We are currently building the pad for the Mary Rose #2 well and
expect to begin drilling in December 2007. Our plan is to have both the Mary
Rose #1 and #2 wells ready to flow to our Eugene Island 11 platform facility
upon its completion.

     The Company's Dutch #3 well began production last week and is currently
producing at a rate of approximately 23.0 Mmcfe/d (approximately 7.0 Mmcfe/d net
to Contango). Combined with our Dutch #1 and Dutch #2 wells, total production
from our three Eugene Island 10 Dutch wells is approximately 75.0 Mmcfe/d
(approximately 23.0 Mmcfe/d net to Contango). Our three Dutch wells flow to a
platform at Eugene Island 24, which is owned and operated by a third party. This
platform is undergoing facility upgrades that are anticipated to permit us to
increase the 8/8ths platform production capacity available to Contango and its
partners for the Dutch #1, #2 and #3 wells to 100 Mmcf/d and 2,000 Bbls/d,
beginning in December 2007.

     In our Arkansas Fayetteville Shale play, we and our partner, Alta Resources
LLC ("Alta") have recently fracture stimulated the Alta-Deltic #1-8H and the
Alta-Deltic 2-8H wells. These two wells are the first Alta operated wells in our
Eastern core area and are now flowing to sales at 2.4 Mmcf/d and 2.2 Mmcf/d,
respectively, for a combined rate of 4.6 Mmcf/d (approximately 1.9 Mmcf/d net to
Contango). This brings the total number of Alta operated producing wells up to
12. The 8/8ths production rate for the other producing 10 Alta wells is
approximately 10 Mmcf/d (approximately 3.9 Mmcf/d net to Contango).
Additionally, we have been integrated by a third party independent oil and gas
exploration company into 152 wells as of October 31, 2007 (the "Integrated
Wells"). Of these 152 Integrated Wells, 89 are producing. The 8/8ths production
rate for 85 of these 89 producing Integrated Wells was approximately 65.9 Mmcf/d
as of October 31, 2007 (approximately 3.3 Mmcf/d net to Contango). Production
data for the remaining four Integrated Wells is not available. The remaining 63
Integrated Wells are either currently being drilled or are expected to be
drilled over the next several months.

     Kenneth R. Peak, the Company's Chairman and Chief Executive Officer, said,
"Our capital expenditure budget for the fiscal year ending June 30, 2008
projects that we will invest $30.0 million in our Gulf of Mexico operations and
$25.6 million in our Fayetteville Shale development play. For the three months
ended September 30, 2007, we invested $5.5 million and $8.5 million in our Gulf
of Mexico and Fayetteville Shale operations, respectively. Depending on rig
availability, weather and other constraints, we may decide to accelerate our
capital expenditures in our Gulf of Mexico operations. Contango has a $30.0
million line of credit available with no debt currently outstanding under this
line. However, we project we will need to borrow under this line in the next 30
to 60 days."

     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.


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