For Immediate Release: Wednesday, February 28, 2001

Callon Petroleum Enters Into Shelf Drilling Program With Unocal Corporation

Natchez, MS (February 28, 2001) --Callon Petroleum Company ( NYSE: CPE / CPE.PrA) announced today it has entered into a three- well Gulf of Mexico shelf drilling program with Unocal Corporation (NYSE: UCL).

Sniper Prospect/East Cameron Block 294 - This prospect, in approximately 180 feet of water, contains two objectives between 3,000 feet and 8,000 feet. The R&B Falcon Rig 204 has spud the well and is currently drilling. Unocal is the operator and Callon holds a 50 percent working interest.

Guadalupe Peak Prospect/East Cameron Block 257 - This well, in approximately 160 feet of water, will test objective sands at approximately 8,000 feet. The Guadalupe Peak Prospect is scheduled to be drilled during the second quarter of 2001 following completion of the Sniper Prospect. Unocal is the operator and Callon holds a 50 percent working interest.

Shiner Prospect/Eugene Island Block 215 - This well, in approximately 100 feet of water, will test an Upper Miocene target. The well will be drilled directionally from the Devon Energy Eugene Island Block 215 "C" platform to a total vertical depth of 17,250 feet. The Shiner Prospect is scheduled to be spud in early March 2001. Unocal is the operator and Callon holds a 50 percent working interest.

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) 442-1601