FORM 10-K CONTANGO OIL & GAS COMPANY

EITF 03-6-1 are effective for financial statements issued for fiscal years beginning after December 15, 2008,
and interim periods within those years. All prior-period EPS data presented shall be adjusted retrospectively
(including interim financial statements, summaries of earnings, and selected financial data) to conform with the
provisions of FSP EITF 03-6-1. Early application is not permitted. We do not expect FSP EITF 03-6-1 to have
a material effect on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations” (“SFAS 141(R)”)
and SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (“SFAS 160”). These
statements require most identifiable assets, liabilities and noncontrolling interests to be recorded at full fair
value and require noncontrolling interests to be reported as a component of equity. Both statements are
effective for periods beginning on or after December 15, 2008, and earlier adoption is prohibited. SFAS 141(R)
will be applied to business combinations occurring after the effective date and SFAS 160 will be applied
prospectively to all noncontrolling interests, including any that arose before the effective date. We are currently
evaluating the provisions of SFAS 141(R) and SFAS 160 and assessing the impact, if any, they may have on
our financial position and results of operations.
Item 7A. Quantitative and Qualitative Disclosure about Market Risk
Commodity Risk. Our major commodity price risk exposure is to the prices received for our natural
gas and oil production. Realized commodity prices received for our production are tied to the spot prices
applicable to natural gas and crude oil at the applicable delivery points. Prices received for natural gas and oil
are volatile, unpredictable and are beyond our control. For the year ended June 30, 2009, a 10% fluctuation in
the prices received for natural gas and oil production would have had an approximate $19 million impact on
our revenues.
Interest Rate Risk. As of August 31, 2009, we have no long-term debt subject to the risk of loss
associated with movements in interest rates.
Item 8. Financial Statements and Supplementary Data
The financial statements and supplemental information required to be filed under Item 8 of Form 10-
K are presented on pages F-1 through F-29 of this Form 10-K.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of the Company’s
senior management of the effectiveness of the Company’s disclosure controls and procedures (as defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of June 30, 2009, the end
of the period covered by this report. Based on that evaluation, the Company’s management, including the
Chairman, Chief Executive Officer, Chief Financial Officer, Controller and Treasurer, concluded that the
Company’s disclosure controls and procedures were effective as of such date to ensure that information
required to be disclosed in the reports that the Company files under the Exchange Act is (i) recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii)
accumulated and communicated to the Company’s management, including the Chairman, Chief Executive
Officer and Chief Financial Officer, together with our Controller and Treasurer, as appropriate, to allow timely
decisions regarding required disclosures.
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