Natchez, MS (January 18, 2000)-Callon Petroleum Company (NYSE: CPE/CPE.PrA) today announced the test results from its natural gas discovery at East Cameron Block 275, located in the Gulf of Mexico's Outer Continental Shelf. Drilled to a measured depth of 10,746 feet, the company's test well encountered net natural gas pay of 160 feet (TVD) in five intervals between 5,800 feet and 10,500 feet.
The well tested at a combined rate of 18.1 million cubic feet of natural gas equivalent (MMcfe) per day from two zones.
From lower perforations between 10,461 feet through 10,482 feet the well tested at 4.6 million cubic feet of natural gas (MMcf) and 240 barrels of condensate (Bc) per day on a 20/64- inch choke with flowing tubing pressure of 2,605 pounds per square inch (Psi). It tested at 8.9 MMcf and 528 Bc per day from upper perforations between 10,384 feet and 10,418 feet on a 22/64-inch choke with flowing tubing pressure of 3,315 Psi. Callon owns a 100 percent working interest in the well, which is the company's third Shelf discovery within 60 days.
Its discovery well at South Marsh Island Block 261, which was announced November 30, 1999, encountered 110 feet of net natural gas pay. Also at South Marsh Island Block 261, the company's second test well encountered 100 feet of net natural gas pay in five pay sands before it blew out on January 2nd. Subsequently, it was brought under control and is being plugged, but will be re-drilled at an adjacent location during the second quarter of this year.
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 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.
For further information contact: Terry Trovato P.O. Box 1287 Natchez, MS 39121 (601) 442-1601terryt@callon.com