Natchez, MS ( March 8, 2000)--Callon Petroleum Company ( NYSE: CPE/CPE.PrA) announced today it has signed a participation agreement with Vastar Resources, Inc. (NYSE: VRI) to acquire a 20 percent working interest in two Gulf of Mexico deepwater prospects located on Garden Banks Blocks 782/785/826/827.
The Entrada prospect is located in 4,690 feet of water on Garden Banks Blocks 782, 826 and 827. The initial well, which will be drilled to a true vertical depth of 15,500 feet, is scheduled to be spud during the second quarter.
The Cirrus prospect is located adjacent to Entrada on Garden Banks Block 785 and is scheduled to be tested after the initial well is drilled at Entrada.
Callon and Vastar currently are drilling the Anvil deepwater prospect, located at Mississippi Canyon Blocks 815/816. Callon owns a 10 percent working interest, and Vastar is the operator.
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