2008-09-02-2008-01-04-2008-01-30

Bought 56% interest in 20,000 AR acres.

XTO Energy Inc., Fort Worth, Texas, (NYSE: XTO) has closed its acquisition of eastern Arkansas Fayetteville shale properties from Contango Oil & Gas Co., Houston, (Amex: MCF) for $128 million. The assets include 56% interest in approximately 20,000 acres. The sale represents Contango's exit from the Fayetteville and is part of Contango's previously announced review of strategic alternatives. The company recently sold its western Arkansas Fayetteville shale properties to Petrohawk Energy Corp., Houston, (NYSE: HK) for $200 million and exchanged them in a like-kind transaction with the purchase of offshore Louisiana properties. Contango chairman and chief executive Kenneth R. Peak says, "We have already begun the process to invest our estimated $109 million in taxable proceeds in a like-kind exchange." The effective date is Dec. 1, 2007. Merrill Lynch & Co. was marketing and financial advisor to Contango. Contango operates primarily in the Gulf of Mexico.