Natchez, MS (January 20, 2000)-Callon Petroleum Company ( NYSE: CPE/CPE.PrA) announced today that an additional sidetrack well being drilled to test the downdip limits of the T1 pay sand in Fault Block B at the company's Medusa discovery on Mississippi Canyon Blocks 538/582 encountered 90 feet (True Vertical Depth) of oil pay. It is the third well drilled on the prospect.
The initial well encountered over 120 feet of total pay after being drilled to a measured depth of 16,241 feet. The original test well encountered 59 true vertical feet of pay in the T1 objective in Fault Block A and 61 true vertical feet of pay in the T4 objective. A subsequent delineation well drilled in mid-December of last year encountered 110 true vertical feet of pay in the T1 objective in Fault Block B.
An additional delineation well was spud on January 14th. It is designed to test the updip limits of the T1 pay sand in Fault Block A. This latest well will be deepened to further delineate the T4 objective, which also was discovered by the original well.
Mississippi Canyon Blocks 538/582 are located in approximately 2,100 feet of water. Callon owns a 15 percent working interest. Murphy Oil Corporation (NYSE: MUR) is the operator and owns 60 percent; British-Borneo Petroleum, Inc. owns the remaining 25 percent. Medusa is Callon's third consecutive deepwater discovery.
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