Natchez, MS (February 13, 2001) -- Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today it ended 2000 with proved reserves of 334 billion cubic feet of natural gas equivalent (Bcfe) and a reserve replacement rate of 584 percent. This represents an increase of 28% over previous year-end proved reserves of 259 Bcfe.
At December 31, 2000, the company's independent petroleum engineers estimated the present value of these reserves, excluding income taxes, using prices in effect as of year-end 2000 and discounted 10%, to be $939 million, a 216 percent increase from $297 million at the end of 1999. Prices used in determining this present value averaged $9.14 per thousand cubic feet of natural gas and $26.71 per barrel of oil.
The company estimates that if this report were prepared using prices of $4.50 per thousand cubic feet of natural gas and $24.00 per barrel of oil, proved reserves would total approximately 333 Bcfe. Under this pricing scenario, the pre- tax present value of proved reserves would be $513 million.
Estimated fourth quarter 2000 production was approximately 45,000 barrels of oil and 3.0 billion cubic feet of natural gas, for a daily average of approximately 35.4 million cubic feet of natural gas equivalent (MMcfe). This production includes 6.4 million cubic feet of natural gas equivalent per day (MMcfe/d) subject to a volumetric production payment agreement.
The decrease in fourth quarter 2000 production was, in part, a direct result of work in progress on the host platform for Callon's East Cameron Block 275 #1 well, which caused the well to be shut in for the entire quarter. The #1 well came back online January 12, 2001 and currently is producing approximately 11.5 million cubic feet of natural gas per day.
Average prices realized during the fourth quarter of 2000, for production not committed under the volumetric production payment, were approximately $5.83 per thousand cubic feet of natural gas and $29.75 per barrel of oil.
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