CONTANGO OIL & GAS COMPANY

Who we are

Contango Oil & Gas Company is a Houston, Texas based, independent oil and
natural gas company. The Companys business is to maximize production and
cash flow from its onshore properties in Texas and Wyoming and its offshore
properties in the shallow waters of the Gulf of Mexico and to use that cash flow to
explore, develop, exploit, produce and acquire crude oil and natural gas properties
in the onshore Texas and Rocky Mountain regions of the United States.

Our primary producing areas as of December 2016 included:

Gulf of Mexico Offshore Louisiana - water depths less than 300 feet

Madison and Grimes counties counties, Texas - Woodbine (Upper

Lewisville)

Zavala and Dimmit counties, Texas - Buda / Austin Chalk

Weston County, Wyoming - Muddy Sandstone

Texas Gulf Coast - Conventional formations

Sublette County, Wyoming - Jonah Field (1)

Mission

Our mission is to create value for our shareholders through the acquisition,
exploitation, exploration and development of oil and gas properties and by
investing in a balanced portfolio of longer life reserves and high impact
opportunities.

Visions and Values

Our vision is to be recognized as a leading profitable producer of oil and natural

gas in the Gulf Coast region and the Gulf of Mexico. We will distinguish ourselves
from our competitors by employing strong technical leadership and creative
commercial solutions, along with the desire to successfully explore for oil and gas
as the low cost producer.

At Contango Oil & Gas Company, we adhere to a defined set of values that
promote and sustain relationships based on high ethical standards and personal
integrity. Our goal is to maintain a talented, cohesive team committed to those
values and standards in promoting Contango as a respected industry leader built
on win/win relationships among all employees, shareholders, customers and
vendors.

Challenges and Successes

Since October 2013, upon the merger with Crimson Exploration Inc., the Company
had focused its drilling efforts on liquids-rich horizontal resource plays, such as the
Woodbine in Southeast Texas, the Eagle Ford and Buda in South Texas, and the
Muddy Sandstone in Wyoming. Beginning in the second half of 2015, we limited
our drilling program due to the challenging commodity price environment, and
instead focused on: (i) the preservation of our strong and flexible financial position,
including limiting our overall capital expenditure budget; (ii) the identification of
opportunities for cost and production efficiencies in all areas of our operations; and
(iii) the maintenance of core leases and the continued identification of new
resource potential opportunities internally, and, where appropriate, through
acquisition. As a result, our only drilling activity in early 2016 was in Weston
County, Wyoming where we completed our third well targeting the Muddy
Sandstone formation. We began drilling our initial well in the Southern Delaware
Basin in October 2016, with first production from that well occurring in late January
2017. We currently have three subsequent Southern Delaware Basin wells in
varying stages of drilling or completion. We expect that our Southern Delaware
Basin position will be the primary focus of our drilling program for 2017.

The Company also has (i) operated producing properties in the Haynesville Shale,
Mid Bossier and James Lime formations in East Texas and (ii) operated
conventional producing properties in the south and southeast areas of Texas. In
December 2016, the Company sold its operated producing properties in the
Denver Julesburg Basin (DJ Basin) in Weld and Adams counties in Colorado.

During the quarter ended September 30, 2016, in conjunction with the purchase of
our Southern Delaware Basin position, we completed an underwritten public
offering of 5,360,000 shares of our common stock for net proceeds of
approximately $50.5 million, which were used to fund the initial purchase of this
acreage and provide funding for the costs associated with drilling our initial wells in
the Southern Delaware Basin.

Our production for the year ended December 31, 2016 was approximately 26.0
Bcfe (or 71.0 Mmcfe/d), was 68% from our offshore properties and was 70%
natural gas. Our production for the three months ended December 31, 2016 was
approximately 5.9 Bcfe (or 64.3 Mmcfe/d), was 70% from our offshore properties
and was 71% natural gas. As of December 31, 2016, our proved reserves were
approximately 85% proved developed, were 61% offshore, were 69% natural gas
and were 95% attributed to wells and properties operated by us.

Bibliography

https://www.contango.com/
https://www.google.com/finance?catid=us-
TRBC:501020&ei=8x54VvG5Jo2bjAGbnJOoCw
https://owl.english.purdue.edu/owl/section/2/9/