For further information contact

John S. Weatherly, CFO 1-800-451-1294

                             

FOR IMMEDIATE RELEASE

 

Callon Petroleum CompanyAnnounces

Natural Gas and Crude Oil Hedges

 

Natchez, MS (February 5, 2004)--Callon Petroleum Company ( NYSE: CPE / CPE.PrA) today announced it has hedged a total of 5.4 million mmBtu (million British thermal units) of natural gas production during the 15-month period from January 2004 through March 2005.  The hedges were implemented through derivative transactions in the form of no-cost collars.

 

The company’s natural gas hedges, by calendar quarter, consist of:

 

 

 

Quarter

Ended

Volume

Hedged

(Thousand mmBtu)

Average

Floor Price 

(mmBtu)

Average

Ceiling Price

(mmBtu)

3/31/04

600

$5.13

$7.23

6/30/04

1,500

$5.00

$6.08

9/30/04

1,500

$5.00

$6.08

12/31/04

3/31/05

1,200

  600

$5.00

$5.00

$6.25

$7.11

 

5,400

 

 

 

 

 

 

 

The company also announced it has hedged approximately one million barrels of crude oil production during the 12-month period from February 2004 through January 2005.  The hedges were implemented through derivative transactions in a combination of swaps and no-cost collars.

 

The company’s crude oil hedges, by calendar quarter, consist of:

 

 

 

Quarter

Ended

Volume

Hedged

(Thousand

Barrels)

Average

Floor Price 

(per bbl)

Average

Ceiling Price

(per bbl)

3/31/04

180

$30.10

$31.93

6/30/04

270

$30.10

$31.93

9/30/04

270

$30.10

$31.93

12/31/04

3/31/05

240

  75

$30.11

$30.12

$31.86

$31.82

 

1,035

 

 

 

 

 

 

 

 

 

 

 

 

Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.

 

            This news release contains projections and other forward-looking statements, including statements regarding the company’s ability to fund its future obligations, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors.

 

 

Monthly Detail of Hedges

 

Collars (a)

 

 

 Collars (b)

       Swaps (b)

Delivery

 

 

 

 

 

 

 

Fixed

Month

mmBtu/day

 Floor

 Ceiling

Bbls/day

Floor

 Ceiling

Bbls/day

Price

Jan-04

6,667

$5.13

$7.23

-

$

-

$

-

-

$

-

Feb-04

6,667

$5.13

$7.23

2,000

$29.50

$32.25

1,000

$31.29

Mar-04

6,667

$5.13

$7.23

2,000

$29.50

$32.25

1,000

$31.29

Apr-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

May-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Jun-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Jul-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Aug-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Sep-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Oct-04

16,667

$5.00

$6.08

2,000

$29.50

$32.25

1,000

$31.29

Nov-04

16,667

$5.00

$6.08

1,500

$29.33

$32.17

1,000

$31.29

Dec-04

6,667

$5.00

$7.11

1,500

$29.33

$32.17

1,000

$31.29

Jan-05

6,667

$5.00

$7.11

1,500

$29.33

$32.17

1,000

$31.29

Feb-05

6,667

$5.00

$7.11

 

 

 

 

 

Mar-05

6,667

$5.00

$7.11

 

 

 

 

 

 

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