Exhibit 99.1


               Contango Elects to Convert Its Series C Preferred
           Stock and Promotes Lesia Bautina to Senior Vice President


    HOUSTON--(BUSINESS WIRE)--July 14, 2005--Contango Oil & Gas
Company (AMEX:MCF) announced today that it has given notice to the
holders of its Series C preferred stock that the Company has elected
to convert all of the outstanding shares of Series C preferred stock
to shares of common stock. Pursuant to the terms of the Series C
preferred stock, the Company has set July 19, 2005 as the mandatory
conversion date. The outstanding shares of the Series C preferred
stock have a face value of $7 million, currently pay a 6.0% annual
dividend and are convertible into 1,166,662 shares of Contango common
stock. The shares of common stock issued upon conversion of the Series
C preferred stock are registered for resale with the Securities and
Exchange Commission.
    Contango also announced today that Lesia Bautina has been promoted
to Senior Vice President. Ms. Bautina will continue to report to
Kenneth R. Peak, Chairman and CEO. Ms. Bautina joined Contango Oil &
Gas Company in 2001 as Controller and was appointed Vice President and
Controller in August 2002. Ms. Bautina is a Certified Public
Accountant and member of the Petroleum Accounting Society of Houston.
    Kenneth R. Peak, Chairman and Chief Executive Officer, said,
"Lesia has played a major role in our success and this promotion is
well deserved."
    Contango is a Houston-based, independent natural gas and oil
company. The Company explores, develops, produces and acquires natural
gas and oil properties primarily onshore in the Gulf Coast and
offshore in the Gulf of Mexico. Contango also owns a 10% partnership
interest in Freeport LNG Development L.P., and a 32% interest in
Contango Capital Partnership Management, LLC, and 25% interest in the
Contango Capital Partners Fund, L.P., which were formed to invest in
the alternative energy venture capital market with a focus on
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