Exhibit 10.1
 $50,000,000
 AMENDED AND RESTATED CREDIT AGREEMENT
   CONTANGO OIL & GAS COMPANY,
CONTANGO ENERGY COMPANY,
AND
CONTANGO OPERATORS, INC.
  THE LENDERS PARTY HERETO FROM TIME TO TIME
   GUARANTY BANK




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##### 



TABLE OF CONTENTS
 PageARTICLE I DEFINITIONS AND ACCOUNTING TERMS
    
    
    21.01 Certain Defined Terms
    
    
    21.02 Computation of Time Periods
    
    
    181.03 Accounting Terms; Changes in GAAP
    
    
    181.04 Types of Advances
    
    
    181.05 Miscellaneous
    
    
    18ARTICLE II CREDIT FACILITIES
    
    
    182.01 Commitment for Advances
    
    
    182.02 Borrowing Base
    
    
    192.03 Method of Borrowing
    
    
    212.04 Reduction of the Commitments
    
    
    242.05 Prepayment of Advances; Deposits Into Cash Collateral Account
    
    
    242.06 Repayment of Advances
    
    
    262.07 Letters of Credit
    
    
    262.08 Fees
    
    
    302.09 Interest
    
    
    312.10 Payments and Computations
    
    
    322.11 Sharing of Payments, Etc
    
    
    332.12 Breakage Costs
    
    
    342.13 Increased Costs
    
    
    342.14 Taxes
    
    
    35ARTICLE III CONDITIONS PRECEDENT
    
    
    383.01 Conditions Precedent to Effectiveness
    
    
    383.02 Conditions Precedent to All Borrowings
    
    
    40ARTICLE IV REPRESENTATIONS AND WARRANTIES
    
    
    414.01 Corporate Existence; Subsidiaries
    
    
    414.02 Power
    
    
    414.03 Authorization and Approvals
    
    
    414.04 Enforceable Obligations
    
    
    424.05 Financial Statements
    
    
    42
  i




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TABLE OF CONTENTS
 Page4.06 True and Complete Disclosure
    
    
    424.07 Litigation; Compliance with Law
    
    
    424.08 Use of Proceeds
    
    
    434.09 Investment Company Act
    
    
    434.10 Federal Power Act
    
    
    434.11 Taxes
    
    
    434.12 Pension Plans
    
    
    444.13 Condition of Property; Casualties
    
    
    444.14 No Burdensome Restrictions; No Defaults
    
    
    454.15 Environmental Condition
    
    
    454.16 Permits, Licenses, Etc
    
    
    464.17 Gas Contracts
    
    
    464.18 Liens; Titles, Leases, Etc
    
    
    464.19 Solvency and Insurance
    
    
    474.20 Hedge Contracts
    
    
    474.21 Material Agreements
    
    
    47ARTICLE V AFFIRMATIVE COVENANTS
    
    
    475.01 Compliance with Laws, Etc
    
    
    475.02 Maintenance of Insurance
    
    
    485.03 Preservation of Corporate Existence, Etc
    
    
    495.04 Payment of Taxes, Etc
    
    
    495.05 Books and Records; Visitation Rights
    
    
    495.06 Reporting Requirements
    
    
    495.07 Maintenance of Property
    
    
    525.08 Agreement to Pledge
    
    
    525.09 Use of Proceeds
    
    
    535.10 Title Opinions
    
    
    535.11 Further Assurances; Cure of Title Defects
    
    
    535.12 Cash Management Services
    
    
    545.13 Certain Post Closing Matters
    
    
    54
  ii




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TABLE OF CONTENTS
 PageARTICLE VI NEGATIVE COVENANTS
    
    
    546.01 Liens, Etc
    
    
    546.02 Debts, Guaranties, and Other Obligations
    
    
    556.03 Agreements Restricting Liens and Distributions
    
    
    566.04 Merger or Consolidation; Asset Sales
    
    
    566.05 Restricted Payments
    
    
    576.06 Investments
    
    
    576.07 Affiliate Transactions
    
    
    586.08 Compliance with ERISA
    
    
    586.09 Sale-and-Leaseback
    
    
    596.10 Change of Business
    
    
    596.11 Organizational Documents, Name Change
    
    
    596.12 Use of Proceeds; Letters of Credit
    
    
    596.13 Take-or-Pay or Other Prepayments
    
    
    596.14 Limitation on Speculative Hedging
    
    
    606.15 Accounts Payable
    
    
    606.16 Current Ratio
    
    
    60ARTICLE VII EVENTS OF DEFAULT; REMEDIES
    
    
    607.01 Events of Default
    
    
    607.02 Optional Acceleration of Maturity
    
    
    637.03 Automatic Acceleration of Maturity
    
    
    637.04 Right of Set-off
    
    
    647.05 Non-exclusivity of Remedies
    
    
    647.06 Application of Proceeds
    
    
    64ARTICLE VIII MULTIPLE BORROWERS
    
    
    658.01 Obligations Joint and Several and Unconditional
    
    
    658.02 Reinstatement
    
    
    668.03 Subrogation
    
    
    668.04 Remedies
    
    
    668.05 Limitation on Obligations
    
    
    668.06 Borrower Representative
    
    
    66
  iii




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TABLE OF CONTENTS
 PageARTICLE IX THE ADMINISTRATIVE AGENT AND THE ISSUING LENDER
    
    
    679.01 Authorization and Action
    
    
    679.02 Administrative Agents Reliance, Etc
    
    
    679.03 The Administrative Agent and Its Affiliates
    
    
    679.04 Lender Credit Decision
    
    
    689.05 Indemnification
    
    
    689.06 Successor Administrative Agent and Issuing Lender
    
    
    699.07 Collateral Matters
    
    
    69ARTICLE X MISCELLANEOUS
    
    
    7010.01 Amendments, Etc
    
    
    7010.02 Notices, Etc
    
    
    7110.03 No Waiver; Remedies
    
    
    7110.04 Costs and Expenses
    
    
    7110.05 Binding Effect
    
    
    7210.06 Lender Assignments and Participations
    
    
    7210.07 Indemnification
    
    
    7510.08 No Consequential Damages
    
    
    7510.09 Execution in Counterparts
    
    
    7610.10 Survival of Representations, Etc
    
    
    7610.11 Severability
    
    
    7610.12 Business Loans
    
    
    7610.13 Governing Law
    
    
    7610.14 Submission to Jurisdiction
    
    
    7610.15 Confidentiality
    
    
    7710.16 WAIVER OF JURY TRIAL
    
    
    7810.17 USA PATRIOT ACT Notice
    
    
    7810.18 ORAL AGREEMENTS
    
    
    7810.19 Amendment and Restatement
    
    
    79
  iv




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EXHIBITS:
 Exhibit A
    
    
    
    Form of Assignment and AssumptionExhibit B
    
    
    
    Form of MortgageExhibit C
    
    
    
    Form of NoteExhibit D
    
    
    
    Form of Notice of BorrowingExhibit E
    
    
    
    Form of Notice of Conversion or ContinuationExhibit F
    
    
    
    Form of Security AgreementExhibit G
    
    
    
    Form of Transfer Letters
 SCHEDULES:
 Schedule I
    
    
    
    Borrowers, Administrative Agent, and Lender InformationSchedule 4.01
    
    
    
    SubsidiariesSchedule 4.05
    
    
    
    Existing DebtSchedule 4.07
    
    
    
    LitigationSchedule 4.20
    
    
    
    Hedge ContractsSchedule 4.21
    
    
    
    Material ContractsSchedule 6.07
    
    
    
    Affiliate Transactions




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AMENDED AND RESTATED CREDIT AGREEMENT
 Contango CEC COI Borrowers Borrower
 RECITALS
 CRC Original Borrowers Original Credit Agreement
 Original Security Instruments
 Restructuring




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ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
 Certain Defined Terms
 Acceptable Security Interest
 Act
 Adjusted Reference Rate 1 2
 Administrative Agent
 Advance
 Affiliate
 Agreement
 Approved Fund
  2




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Assignment and Assumption
 Borrower Borrowers
 Borrower Representative
 Borrowing
 Borrowing Base
 Business Day
 Capital Leases
 Cash Collateral Account
 Cash Management Agreement
 Cash Management Bank
 Cash Management Bank Obligations provided
 CEC
  3




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CERCLA
 Change in Control
 Chapter One
 Code
 COI
 Collateral
 Commitment Commitments
 Commitment Termination Date
  4




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Contango
 Control Percentage
 Controlled Group
 Convert Conversion Converted
 CRC
 Credit Extensions
 Current Assets
 Current Liabilities
 Debt
    5




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Default
 DMR Leases
 Dollars $
 Effective Date
 Eligible Assignee provided
  6




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##### 



Engineering Report
 Environment Environmental
 Environmental Claim
 Environmental Law
 Environmental Permit
 Equity Interest
 ERISA
 ERISA Affiliate
  7




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##### 



Eurocurrency Liabilities
 Eurodollar Rate provided
 Eurodollar Rate Advance
 Event of Default
 Expiration Date
 Extraordinary Proceeds
 Federal Funds Rate
  8




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Federal Reserve Board
 Fund
 GAAP
 Governmental Authority
 Hazardous Substance
 Hazardous Waste
 Hedge Contract Master Agreement
 Hydrocarbon Hedge Agreement
 Hydrocarbons
  9




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Indemnitee Section 10.07
 Independent Engineer
 Information Section 10.15
 Initial Financial Statements
 Interest Hedge Agreement
 Interest Period provided
      10




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Issuing Lender
 Leases
 Legal Requirement
 Lenders Lender
 Lending Office
 Letter of Credit Letters of Credit
 Letter of Credit Application
 Letter of Credit Documents
 Letter of Credit Exposure plus
 Letter of Credit Obligations
 Lien
  11




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Liquid Investments
      Loan Documents
 Lost Interest Section 2.09(d)(i)
 Material Adverse Change
  12




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Maturity Date
 Maximum Rate
 Merger Documents
 Mortgages
 Multiemployer Plan
 Note
 Notice of Borrowing
 Notice of Conversion or Continuation
 Obligations
 Oil and Gas Properties
  13




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Original Borrowers
 Original Closing Date
 Original Credit Agreement
 Other Borrower Obligations Section 8.01
 Other Taxes Section 2.14(b)
 PBGC
 Permit
 Permitted Liens
 Permitted Subject Liens
 Person
 Plan
 Pro Rata Share
 Property
 Proven Reserves
  14




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Reference Rate
 Reference Rate Advance
 Register
 Regulations D, T, U, and X
 Reimbursement Obligations
 Related Parties
 Release
 Reportable Event
 Required Lenders 2 3 2 3
 Response
 Responsible Officer
  15




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Restricted Payment provided
 Restructuring
 Returns Section 4.11(c)
 Secured Parties
 Security Agreements
 Security Instruments
 Solvent
  16




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Subsidiary
 Summer/Fall Months Section 6.14
 Swap Counterparty
 Taxes Sections 2.14(a) 4.11(b)
 Tax Group Section 4.11(a)
 Termination Event
 Transfer Letters
 Type
 Unused Commitment Amount minus plus
  17




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Wells Section 2.02(b)(iv)
 Winter/Spring Section 6.14
 Computation of Time Periods
 Accounting Terms; Changes in GAAP
 Types of Advances
 Miscellaneous
 ARTICLE II
CREDIT FACILITIES
 Commitment for Advances
   18




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Notes
 Borrowing Base
 Borrowing Base
 Calculation of Borrowing Base
  .
  19




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Wells
 Interim Redeterminations
  20




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Standards for Redetermination
 Voting
 Method of Borrowing
 Notice
  21




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Conversions and Continuations
 Certain Limitations
     22




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Notices Irrevocable
 Administrative Agent Reliance
  23




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Lender Obligations Several
 Reduction of the Commitments
 Optional provided
 Mandatory
 Application
 Prepayment of Advances; Deposits Into Cash Collateral Account
 Optional provided
  24




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Mandatory
    Illegality
  25




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No Additional Right; Ratable Prepayment
 Repayment of Advances
 Letters of Credit
 Commitments for Letters of Credit
 minus
     26




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Participations
 Issuing provided
 Reimbursement
   27




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Obligations Unconditional
     28




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##### 



provided
 Liability of Issuing Lender
     except
  29




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Cash Collateral Account
    Letters of Credit Issued for Subsidiaries
 Fees
 Commitment Fees
  30




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Letter of Credit Fees
   Interest
 Reference Rate Advances provided
 Eurodollar Rate Advances plus provided .
 Additional Interest on Eurodollar Rate Advances
  31




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##### 



Usury Recapture
 Lost
Interest
   Payments and Computations
 Payment Procedures
  32




---



##### 



Computations
 Non-Business Day Payments provided
 Administrative Agent Reliance
 Sharing of Payments, Etc provided
  33




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##### 



Breakage Costs
 Increased Costs
 Eurodollar Rate Advances
 Capital Adequacy
  34




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##### 



Letters of Credit provided
 Taxes
 No Deduction for Certain Taxes Taxes provided
  35




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##### 



Other Taxes Other
Taxes
 Indemnification
  36




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##### 



Foreign Lender Withholding Exemption
 Evidence of Payments
  37




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ARTICLE III
CONDITIONS PRECEDENT
 Conditions Precedent to Effectiveness
 Documentation
        38




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Payment of Fees
 Security Instruments
 Environmental
 No Default
 Representations and Warranties
 Material Adverse Change
 No Proceeding or Litigation; No Injunctive Relief
 Consents, Licenses, Approvals, Etc
  39




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##### 



Material Contracts
 Notice of Borrowing
 Due Diligence
 Restructuring
 Conditions Precedent to All Borrowings
    40




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##### 



ARTICLE IV
REPRESENTATIONS AND WARRANTIES
  Corporate Existence; Subsidiaries
 Power
 Authorization and Approvals
  41




---



##### 



Enforceable Obligations
 Financial Statements
     True and Complete Disclosure
 Litigation; Compliance with Law
   42




---



##### 



Use of Proceeds
 Investment Company Act
 Federal Power Act
 Taxes
 Reports and Payments Tax Group
  43




---



##### 



Taxes Definition
 Returns Definition
 Pension Plans
 Condition of Property; Casualties
  44




---



##### 



No Burdensome Restrictions; No Defaults
   Environmental Condition
 Permits, Etc
 Certain Liabilities
  45




---



##### 



Certain Actions
 Permits, Licenses, Etc
 Gas Contracts
 Liens; Titles, Leases, Etc
  46




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##### 



Solvency and Insurance
 Hedge Contracts
 Material Agreements
 ARTICLE V
AFFIRMATIVE COVENANTS
  Compliance with Laws, Etc provided
  47




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##### 



Maintenance of Insurance
    48




---



##### 



Preservation of Corporate Existence, Etc
 Payment of Taxes, Etc provided
 Books and Records; Visitation Rights
 Reporting Requirements
 Oil and Gas Reserve Reports
    49




---



##### 



provided
 Defaults
 Termination Events
  50




---



##### 



Termination of Plans
 Other ERISA Notices
 Environmental Notices
 Other Governmental Notices
 Material Changes
 Disputes, Etc
  51




---



##### 



Other Accounting Reports
 Notices Under Other Loan Agreements
 Compliance Certificate
 Other Information
 Maintenance of Property
 Agreement to Pledge
  52




---



##### 



Use of Proceeds
 Title Opinions
 Further Assurances; Cure of Title Defects
  53




---



##### 



Cash Management Services
 ARTICLE VI
NEGATIVE COVENANTS
  Liens, Etc
  provided
   54




---



##### 



Debts, Guaranties, and Other Obligations
  provided
  55




---



##### 



provided
 Agreements Restricting Liens and Distributions
 Merger or Consolidation; Asset Sales
  provided provided
  56




---



##### 



Restricted Payments
 Investments
       57




---



##### 



Affiliate Transactions
 Compliance with ERISA
  58




---



##### 



Sale-and-Leaseback
 Change of Business
 Organizational Documents, Name Change
 Use of Proceeds; Letters of Credit
 Take-or-Pay or Other Prepayments
  59




---



##### 



Limitation on Speculative Hedging
 Accounts Payable
 Current Ratio
 ARTICLE VII
EVENTS OF DEFAULT; REMEDIES
 Events of Default
 Payment
 Representation and Warranties
  60




---



##### 



Covenant Breaches
 Cross-Defaults provided
 Insolvency
  61




---



##### 



Judgments
 Termination Events
 Plan Withdrawals
 Change in Control
 Borrowing Base
 Loan Documents
 Security Instruments
 Potential Failure of Title
 Casualty
 Material Adverse Change
  62




---



##### 



Optional Acceleration of Maturity
    Automatic Acceleration of Maturity
     63




---



##### 



Right of Set-off
 Non-exclusivity of Remedies
 Application of Proceeds
    64




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##### 



ARTICLE VIII
MULTIPLE BORROWERS
 Obligations Joint and Several and Unconditional Other Borrower Obligations
       65




---



##### 



Reinstatement
 Subrogation
 Remedies
 Limitation on Obligations
 Borrower Representative
  66




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##### 



ARTICLE IX
THE ADMINISTRATIVE AGENT AND THE ISSUING LENDER
 Authorization and Action provided
 Administrative Agents Reliance, Etc
 The Administrative Agent and Its Affiliates
  67




---



##### 



Lender Credit Decision
 Indemnification PROVIDED
  68




---



##### 



Successor Administrative Agent and Issuing Lender
 Collateral Matters
    69




---



##### 



ARTICLE X
MISCELLANEOUS
 Amendments, Etc provided
     70




---



##### 



Notices, Etc
 Notices Generally
 Electronic Communications provided provided
 Change of Address, Etc
 No Waiver; Remedies
 Costs and Expenses
  71




---



##### 



Binding Effect
 Lender Assignments and Participations
 Assignments provided
  72




---



##### 



Terms of Assignments
 The Register Register
 Procedures
  73




---



##### 



Participations
 provided
 provided
  provided
  74




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##### 



Indemnification INDEMNITEE , IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE PROVIDED
 No Consequential Damages
  75




---



##### 



Execution in Counterparts
 Survival of Representations, Etc
 Severability
 Business Loans Chapter One
 Governing Law
 Submission to Jurisdiction
  76




---



##### 



Confidentiality Information provided
  77




---



##### 



WAIVER OF JURY TRIAL
 USA PATRIOT ACT Notice Act
 Amendment and Restatement Existing Loan
Documents
  78




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##### 



ORAL AGREEMENTS . THIS WRITTEN AGREEMENT AND THE LOAN DOCUMENTS, AS DEFINED IN
THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
 THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
 [Remainder of this page intentionally left blank. Signature page follows.]
  79




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##### 



BORROWERS:

CONTANGO OIL & GAS COMPANYBy:
    /s/ Kenneth R. PeakName:
    Kenneth R. PeakTitle:
    Chairman and Chief Executive
OfficerCONTANGO ENERGY COMPANYBy:
    /s/ Kenneth R. PeakName:
    Kenneth R. PeakTitle:
    Chairman and Chief Executive
OfficerCONTANGO OPERATORS, INC.By:
    /s/ Kenneth R. PeakName:
    Kenneth R. PeakTitle:
    Chairman and Chief Executive
Officer




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##### 



LENDERS:

GUARANTY BANKBy:
    /s/ Kelly L. Elmore IIIKelly L. Elmore IIISenior Vice President




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##### 



SCHEDULE I
 BORROWERS, ADMINISTRATIVE AGENT, AND LENDER INFORMATION
 Borrowers:Contango Oil & Gas Company
    
    3700 Buffalo SpeedwaySuite 960Houston, Texas 77098Attention: Mr. Kenneth R.
PeakContango Energy Company
    
    3700 Buffalo SpeedwaySuite 960Houston, Texas 77098Attention: Mr. Kenneth R.
PeakContango Operators, Inc.
    
    3700 Buffalo SpeedwaySuite 960Houston, Texas 77098Attention: Mr. Kenneth R.
PeakAdministrative Agent/Issuing Lender:Guaranty Bank
    
    8333 Douglas Avenue10th FloorDallas, Texas 75225Facsimile: 214.360.3463Attention: Mr. John Clark
 Commitments
 Lenders:
    
    Commitments:Guaranty Bank
    
    $
    50,000,000.00Total:
    
    $
    50,000,000.00