CONTANGO

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CONTANGO
Its Never Easy
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Plan B
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Looking for Plan C
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Our Industry

• Capital intensive and increasing
• Depleting asset business with smaller reservoirs
• Mature basins- Going deeper and high tech
• Commodity biz, but prices are robust
• Hedge on war on terror
• Hedge on strong global economy (Chindia)
• Falling prices?

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The Ideal Oil Gas Company
Would have R/P of zero Contango
Reinvestment
risk Contango Shareholder
Friendly Contango
Comment Not conventional wisdom- we
finally got there EBITDAX of 118.2 million over
last 5 years PV-10 vs. Going
Concern Resource plays are the
buzz Onshore/LNG/Deep Shelf/Alternative
Energy How much of the pie is yours? Fully/Fully
diluted share count down 6 since inception

• Second, we wish for very little trading
  activity. If we ran a private business with a
  few passive partners, we would be disappointed if
  those partners, and their replacements,
  frequently wanted to leave the partnership.
  Running a public company we feel the same way.
  
• Warren
  Buffett

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Lets Cut To The Chase
Market Value Added- MVA ( 1 )
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The Contango Model

• Outsource everything - /- 10 GEOs
• 4 employees
• Successful efforts accounting
• No hedges
• Large management ownership
• Expense options
• Perpetual pikable preferred
• Quarterly reserves/SEC PV-10 disclosure

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Our Four Biz Segments

• Onshore
• 15-25 ROR business
• /- 500,000 DHC/ well
• Modest growth with a couple shots at quantum
• Offshore
• 4,000 blocks 3-D reprocessed PSTM/41 Leases
• 2 million reprocessing center
• Largely self-funding going forward
• Capital position allows us to fund
• LNG
• 10 ownership in Freeport LNG
• 1.3 mm net investment
• No Contango GA necessary
• Under construction/ Expansion likely
• Alternative Energy
• Betting on fuel cells

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Onshore
Wells to be drilled in the next 12 months
20, with estimated net to Contango DHC 10
million.
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Onshore Goals

• /- 2.00/Mcfe FD cost
• Tax shield
• 2 or so game changing dry holes/year
• At best it will be lumpy

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Offshore
Wells to be drilled in the next 6 months
4-6, with estimated net to Contango DHC 1.3.
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Offshore Goals

• Drill 5wells/year 2005 /2006 /2007
• 5-10 discoveries?
• 0/Mcfe FD cost, unless we fund?

No matter how great the talent or effort, some
things just take time, says Buffett. You
cant produce a baby in one month by getting nine
women pregnant. The Real Warren Buffett By
James O Loughlin
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LNG

• FERC Approval
• COP/ DOW/ Mitsubishi TUAs
• Construction has begun- 2008 startup
• LNG Goals
• Expand beyond 1.5 Bcfd to 2.5 Bcfd
• Largely funded by non recourse debt
• Hang-on to our 10 ownership stake

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Alternative Energy

• 32 ownership in
• G.P. Contango Capital
• 25 ownership in Limited Partnership
• 2.1 million net investment
• Focus on fuel cells
• No Contango GA necessary

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Alternative Energy Goals

• First limited partnership closed- 8.2 million
• Grow Trulite, Protonex and Jadoo
• Fund 10 ideas
• 2-4 winners?

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MCFs Beginning
By the way, any Company we buy will have to pay
taxes Warren Buffett- 2002
Annual Shareholders Meeting
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Forward Looking Information

• The following presentation contains
  forward-looking statements and is made pursuant
  to the safe harbor provision of the Private
  Securities Litigation Reform Act of 1995. Oil and
  gas activities are subject to risks and
  uncertainties inherent in the exploration,
  development, operation and marketing of oil and
  natural gas. These risks include, but are not
  limited to, volatility of products, prices,
  uncertainties in reserve estimates, drilling
  risks, operations and production risks and
  environmental issues. Results could vary
  materially from the forward-looking information.
  You are cautioned that such forward-looking
  statements should be read in conjunction with the
  available company information, including the most
  recent Form 10-K/SB, and Form 10-Q.