FORM 10-K CONTANGO OIL & GAS COMPANY

Standardized Measure of
Fiscal Year of Proceeds Reserves Reserves at end of Discounted Future Net Cash
Property Sale Received Sold (Mmcfe) Fiscal Year (Mmcfe) Flows at end of Fiscal Year
2007 $ 7,000,000
426 84,876 $
252,297,275
2008 $ 328,300,000 13,789 369,076 $
2,233,918,129
For fiscal year 2008, the Company realized approximately $8.1 million in operating cash flows from
discontinued operations, approximately $319.0 million in investing cash flows from discontinued operations
and zero in financing cash flows from discontinued operations.
Off Balance Sheet Arrangements
None.
Contractual Obligations
The following table summarizes our known contractual obligations as of June 30, 2009:
Payment due by period
Total
Less than 1
year 1-3 years 3-5 years
More than 5
years
Operating leases………………… 436,824 184,482 252,342 - -
Total………………………… $ 436,824 $ 184,482 $ 252,342 $ - $ -
Share Repurchase Program
In September 2008, the Company’s board of directors approved a $100 million share repurchase
program. Under the program, all shares are purchased in the open market from time to time by the Company
or through privately negotiated transactions. The purchases will be made subject to market conditions and
certain volume, pricing and timing restrictions to minimize the impact of the purchases upon the market.
Repurchased shares of common stock become authorized but unissued shares, and may be issued in the future
for general corporate and other purposes. As of August 31, 2009, we have purchased 1,224,354 shares of our
common stock at an average cost per share of $42.30, for a total expenditure of approximately $51.8 million.
As at August 31, 2009, we have 15,828,980 shares of common stock outstanding and 16,514,147 fully diluted
shares.
Credit Facility
On August 26, 2008, the Company prepaid the $15.0 million it had outstanding under its $30.0
million loan agreement with a private investment firm (the “Term Loan Agreement”) and terminated the Term
Loan Agreement. On February 5, 2008, using the proceeds from our $68.0 million sale of Freeport LNG, the
Company prepaid the $20.0 million it had outstanding under its three-year $20.0 million secured term loan
facility with The Royal Bank of Scotland plc (the “RBS Facility”) and terminated the RBS Facility.
On October 3, 2008, the Company and COI, as successor by merger to Contango Resources
Company, completed the arrangement of a $50 million Hydrocarbon Borrowing Base secured revolving credit
facility pursuant to a credit agreement with Guaranty Bank, as administrative agent and issuing lender (the
“Credit Agreement”). The credit facility is secured by substantially all of the Company’s assets and is
available to fund the Company’s exploration and development activities, as well as the repurchase of shares of
the Company’s common stock, the payment of dividends, and working capital as needed. Borrowings under
the Credit Agreement bear interest at LIBOR plus 2.0% per annum. The outstanding principal amount and any
accrued interest thereon is due October 3, 2010, and may be prepaid at any time in accordance with the Credit
Agreement with no prepayment penalty. An arrangement fee of 0.5%, or $250,000, was paid in connection
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