Natchez, MS ( March 5, 2001)--Callon Petroleum Company ( NYSE: CPE/CPE.PrA) announced today its partner in the deepwater Medusa Prospect, Murphy Oil Corporation (NYSE: MUR), has awarded a contract to J. Ray McDermott, Inc. to provide a floating production system which should put this major discovery online by the fourth quarter of 2002. It is located on Mississippi Canyon Blocks 538 and 582 in the Gulf of Mexico in approximately 2,200 feet of water. Upon completion, it is estimated the facility will have the capacity to handle 40,000 barrels of crude oil and 110 million cubic feet of natural gas per day.
J. Ray McDermott's wholly owned subsidiary, SparTEC, Inc., will be the general contractor responsible for the Engineering, Procurement, Construction and Installation (EPCI) Spar Contract. Financial terms of the contract are not being disclosed.
Callon owns a 15 percent interest. Murphy is the operator of Medusa with a 60 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) 442-1601terryt@callon.com