Article: Contango Announces Second Successful Well at its Mary Rose Prospect and Updates Operations.

HOUSTON -- Contango Oil & Gas Company (AMEX:MCF) announced a successful well at its Mary Rose prospect located in Louisiana state waters at State Lease No. 19266. This is the second well the Company has drilled on its Mary Rose prospect ("Mary Rose #3"). The 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.

On an 8/8ths basis, proved reserves from our Dutch and Mary Rose discoveries increased from 435 billion cubic feet equivalent ("Bcfe") as of December 31, 2007 to 620 Bcfe, a 43% increase, as estimated by the Company's independent third party ...

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