FORM 10-K CONTANGO OIL & GAS COMPANY

CONTANGO OIL & GAS COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)
Change in Standardized Measure. Changes in the standardized measure of future net cash flows relating to
proved natural gas and oil reserves are summarized below:
Year Ended June 30,
2009 2008 2007
Changes due to current year operation:
Sales of natural gas and oil, net of
natural gas and oil operating expenses…………………...… $ (166,971,446) $ (118,255,500) $ (17,015,997)
Extensions and discoveries…………………………………… 9,053,412 1,320,872,171 326,092,883
Net change in prices and production costs………………...… (2,246,528,398) 393,348,968 1,721,445
Change in future development costs………………………..… 5,274,099 50,366,258 2,737,444
Revisions of quantity estimates…………………………...…… 24,805,146 641,122,998 5,450,220
Purchase of reserves…………………………………………… - 868,101,751 -
Sale of reserves………………………………………………. - (26,923,252) (1,529,012)
Accretion of discount………………………………………… 318,384,235 32,917,957 885,209
Change in the timing of production rates and other…………… (237,994,644) (306,888,418) 1,985,288
Changes in income taxes……………………………………… 698,150,911 (873,042,079) (75,764,311)
Net change……………………………………………………… (1,595,826,685) 1,981,620,854 244,563,169
Beginning of year………………………………………………… 2,233,918,129 252,297,275 7,734,106
End of year………………………………………………….…… $ 638,091,444 $ 2,233,918,129 $ 252,297,275
For the fiscal year ended June 30, 2009 and 2008, the standardized measure decreased by approximately
$238.0 million and $306.9 million, respectively, due to a change in the timing of production rates and other. This is
mainly attributable to production profile differences and other imprecise assumptions. We only had two wells
producing in 2007, seven wells producing in 2008, and ten wells producing in 2009. Bringing additional wells online
required us to lower our production rates on existing wells to ensure that the capacity of the third-party operated
facilities downstream were not exceeded.
DB2/21043537.7 F-28