Contango Announces Pricing of Common Stock Offering

HOUSTON--(BUSINESS WIRE)--Contango Oil & Gas Company (NYSE MKT:MCF) (“Contango” or the “Company”) today announced that it has priced a public offering of 5,000,000 shares of its common stock for total gross proceeds (before the underwriting discount and estimated expenses) of $50 million. The underwriters have an option for 30 days to purchase up to an additional 750,000 shares of common stock from the Company. Proceeds from the offering are expected to be used to fund the purchase price of the Company’s recently announced acquisition of undeveloped Southern Delaware Basin acreage from a third party (the “Acquisition”) and drilling costs associated with the initial development thereof. Pending such use, the Company intends to use the proceeds of the offering to repay amounts outstanding under its revolving credit facility, which will be reborrowed from time to time. If the Acquisition does not close, the Company intends to use the net proceeds for general corporate purposes.

RBC Capital Markets, SunTrust Robinson Humphrey and Seaport Global Securities are acting as joint book-running managers for the offering. The offering is expected to close on July 27, 2016, subject to customary closing conditions.

The offering will be made only by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission’s website at www.sec.gov. Alternatively, the underwriters will arrange to send you the prospectus supplement and related base prospectus if you request them by contacting:

RBC Capital Markets, LLC	SunTrust Robinson Humphrey, Inc.
Attn: Equity Syndicate	Attn: Prospectus Department
200 Vesey Street, 8^th Floor	3333 Peachtree Road NE, 9th Floor
New York, New York 10281-8098	Atlanta, GA 30326
Telephone: [phone]	Telephone: [phone]
Email: [e-mail]	Email: [e-mail]
Seaport Global Securities LLC
360 Madison Avenue, 21st Floor
New York, NY 10117
Telephone: [phone]
Email: [e-mail]

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities will be offered and sold pursuant to an effective registration statement previously filed with the Securities and Exchange Commission.

Contango Oil & Gas Company is a Houston, Texas based, independent energy company engaged in the acquisition, exploration, development, exploitation and production of crude oil and natural gas offshore in the shallow waters of the Gulf of Mexico and in the onshore Texas Gulf Coast and Rocky Mountain regions of the United States. Additional information is available on the Company's website at www.contango.com.

This press release contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on Contango's current expectations and includes statements regarding other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; shortages of drilling equipment, oil field personnel and services; unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Contango's operations or financial results are included in Contango's Annual Report on Form 10-K and other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.