Natchez, MS (February 13, 2001) -- Callon Petroleum Company (NYSE: CPE / CPE.PrA) today announced initial details of its 2001 Gulf of Mexico Shelf drilling program. The rig Pride Wyoming is being utilized to drill seven of the wells scheduled for the first half of 2001. Other rigs will be employed for the balance of the first-half drilling program.
At Main Pass Block 159, the Pride Wyoming has completed a side track of the #1 well. The initial production rate was 1.5 million cubic feet of natural gas per day (MMcf/d). Subsequently, the rig was moved to Main Pass Block 163 for a recompletion of the #1A well. The initial production rate for that well was 500 thousand cubic feet of natural gas per day (Mcf/d) and now it is producing at 1.0 MMcf/d.
The Pride Wyoming then was moved to Mobile Block 908 and has drilled the #4 well to total depth. This successful exploratory well encountered over 40 feet of net productive natural gas pay and currently is being completed. First production is anticipated by late February. The rig has been moved to Mobile Block 864 and is drilling the #A-3 well. Then, it will be moved to South Marsh Island Block 261 to side track the #1 well into an adjacent untested fault block, and then drill a new fault block step out (SMI 261 #5). If the #5 well is successful, the Pride Wyoming will stay on site to drill an additional infield test (SMI 261 #6).
Callon will serve as operator in all instances, and owns a 100 percent working interest in Main Pass Blocks 159 and 163, Mobile Block 908, and South Marsh Island Block 261. It owns a 66.4 percent working interest in Mobile Block 864.
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