CONTANGO OIL & GAS COMPANY NEWS RELEASE Contango Purchases Option on Freeport LNG Facility HOUSTON, TX, June 5, 2002, Contango Oil & Gas Company (AMEX: MCF) announced today that it has purchased options to buy up to a 20% equity interest in the Cheniere Energy, Inc. (AMEX:CXY) proposed Freeport, Texas LNG receiving terminal (“Freeport”). The purchase price for an initial 10% interest in the project is $1.5 million, consisting of a $750,000 payment made at signing and the balance payable upon exercise of the option. In the event Contango elects not to exercise the initial 10% option, the $750,000 up-front payment will be repaid to Contango on or prior to July 15, 2003. In the event the initial 10% option is exercised, Contango will have the right to acquire an additional 10% interest in the project upon payment of an additional $1.5 million. Contango would also be responsible for its share of all project costs, subsequent to January 1, 2002. Kenneth R. Peak, Chairman and CEO, stated, “We are delighted to be working with Cheniere’s experienced management team to help make their Freeport LNG facility become a reality. With growing concerns regarding the “greenhouse effect” and carbon dioxide emissions, I believe additional LNG imports will be required to help close the gap between North American supplies and our country’s growing natural gas demand needs. Cheniere’s Freeport location is ideally situated two miles from deep water and within a 100-mile radius of 6 BCF per day of consumption”. Contango is an independent natural gas and oil company that explores for, develops, produces and sells natural gas and crude oil. Contango’s exploration and production efforts are currently focused onshore on the Gulf Coast and offshore in the Gulf of Mexico. 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. Contango Oil & Gas Company For information, contact: 3700 Buffalo Speedway, Suite 960 Kenneth R. Peak Houston, Texas 77098 (713) 960-1901 www.mcfx.biz .