Natchez, MS (February 2, 2000) -- Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today that it ended 1999 with proved reserves of 259 billion cubic feet of natural gas equivalent (Bcfe) and a reserve replacement rate of 884%. This represents an increase of 101% over previous year-end proved reserves of 129 Bcfe and a reserve replacement rate of 290%.
At December 31, 1999, the company's independent petroleum engineers estimated the present value, excluding income taxes, of these reserves, using prices in effect as of year-end 1999, and discounted 10%, at $296.5 million, a 201% increase from $98.5 million at the end of 1998.
Year-end 1999 prices used in determining this present value were $2.30 per thousand cubic feet of natural gas and $24.79 per barrel of oil.
Additions from drilling and acquisitions, net of revisions, equaled 147 Bcfe and represent a reserve replacement rate equal to 884% of the company's 1999 production of 16.6 Bcfe.
The 1999 reserve increase is a result of the company's successful drilling and acquisition activities on the Outer Continental Shelf (OCS) and Deepwater Regions of the Gulf of Mexico. 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