For Immediate Release: Wednesday, February 28, 2001

Callon Petroleum Company Reports Fourth Quarter Results, Record Revenues and Net Income for Year 2000

Natchez, MS (February 28, 2001)-Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported the results of its operations for the year and three-month period ended December 31, 2000.

Operating results for the year ended December 31, 2000 include oil and gas sales of $56.3 million from average production of 41.9 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $37.1 million from average daily production of 45.4 MMcfe/d during 1999.

Total revenues for the 12-month period ended December 31, 2000 increased 49 percent to $58.1 million compared to $39.0 million for the same period of 1999. For the 12 months ended December 31, 2000, the company reported a 378 percent increase in net income to $12.5 million, or $0.80 per diluted share. At year-end 1999, the company reported net income of $2.6 million, or $0.01 per diluted share.

Operating results for the three-month period ended December 31, 2000 include oil and gas sales of $16.6 million from average production of 35.5 MMcfe/d. This corresponds to sales of $10.4 million from average daily production of 45.8 MMcfe/d during the same period of 1999. The net income per diluted share for the three-month period of 2000 was $0.24 compared to $0.03 for the same period of 1999.

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.

			   



                                Callon Petroleum Company
                           Summary Revenues and Net Incomes
                       (In thousands, except per share amounts)

                                Three Months Ended              Twelve Months Ended 
                                   December 31                      December 31
                               2000             1999           2000              1999
                               ____             ____           ____              ____      
				    
Revenues                    $  16,821        $ 11,004       $  58,077         $ 38,993 
																	    
Net income                  $   3,961        $    875       $  12,547         $  2,627
																		 
Preferred stock dividends   $     745        $    555       $   2,403         $  2,497      

Net income available 
to common shares            $   3,216        $    320       $  10,144         $    130     

Net income per 
common share:
   Basic                    $    0.25        $   0.03       $    0.82         $   0.01 
   Diluted                  $    0.24        $   0.03       $    0.80         $   0.01 

Weighted average shares:
   Basic                       13,120          10,495          12,420            8,976 
   Diluted (1)                 13,551          10,663          12,745            9,075


(1) Does not include approximately 1.4 million shares of common stock issuable upon conversion of the convertible preferred stock because their inclusion would have an antidilutive impact on earnings per share.

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For further information contact:
Terry Trovato
P.O. Box 1287
Natchez, MS  39121

(601) 442-1601
terryt@callon.com