For further information contact

John S. Weatherly, CFO   1-800-451-1294

 

FOR IMMEDIATE RELEASE

 

Correcting and Replacing Callon Petroleum Company Issues Guidance

For First Quarter, Full Year 2005

 

         Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is correcting previously issued guidance for the first quarter and full year 2005.   In the first table, First Quarter and Full Year 2005 Guidance Estimates, under Guidance for Full Year 2005, changes are as follows:  Lease Operating Expenses: Cash should be $20,500 - $23,000 (sted $27,000 - $30,500), Total should be $20,500 - $23,000 (sted $27,000 - $30,500).  General and Administrative Expenses:  Cash should be $5,600 - $6,200 (sted $6,900 - $7,600), Non-cash should be 1,700 - 1,900 (sted 400-500).

 

The corrected release reads:

 

Callon Petroleum Company Issues Guidance For First Quarter, Full Year 2005

 

Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is issuing guidance for the first quarter and full year 2005.  The guidance, found in the table below, is expressed in ranges for the detailed components.

 

 

 

 

 

 

First Quarter and Full Year 2005

Guidance Estimates

(In thousands, except per production unit amounts)

 

 

 

Guidance for

 1st Quarter 2005

Guidance for

Full Year 2005

Estimated production volumes:

 

 

   Natural gas (Bcf)

2.7 - 3.0

10.5 – 12.0

   Crude oil (Mbo)

580 – 640

2,200 – 2,550

   MMcfe/d

69 – 76

65 – 75

 

 

 

Lease operating expenses:

 

 

 

 

 

   Cash

$5,500 - $6,100

$20,500 - $23,000

   Non-cash

                    --              

--

   Total

$5,500 - $6,100

$20,500 - $23,000

 

 

 

General and administrative expenses:

 

 

 

 

 

   Cash

$1,300 - $1,500

$5,600 - $6,200

   Non-cash

400 -      450

1,700 -   1,900

   Total

$1,700 - $1,950

$7,300 - $8,100

 

 

 

Interest expense:

 

 

 

 

 

   Cash

$3,700 - $4,100

$14,300 - $15,800

   Non-cash

400  -     500

1,900  -    2,100

   Total

$4,100 - $4,600

$16,200 - $17,900

 

 

 

Medusa Spar LLC, net of tax

 

$400 - $500

$1,700 - $1,900

 

 

 

DD & A – Oil and gas properties

$14,200 - $15,700

$55,000 - $63,000

 

 

 

Accretion expense

$800 - $900

$2,900 - $3,300

 

 

 

Amortization of premiums on derivative contracts

$350 - $400

$1,500 - $1,650

 

 

 

Accrual income tax rate

35%

35%

 

 

 

Cash income tax rate

0%

0%

 

                                


 

 

The preceding guidance estimates contain assumptions that we believe are reasonable.  These estimates are based on information that is available as of the date of this news release.  We are not undertaking any obligation to update these estimates as conditions change or as additional information becomes available. 

 

Listed below are the outstanding hedges for natural gas and crude oil by quarter for 2005.

 

 

 

 

For the Quarter Ended

 

 

3/31/05

6/30/05

9/30/05

12/31/05

Natural Gas

 

 

 

 

 

 

 

 

 

 

Collars

Volume (Mmcf)

         900

         --

           --

         --

 

Ceiling

 $     6.91

         --

           --

         --

 

Floor

 $     5.00

         --

           --

         --

 

 

 

 

       

 

Collars

Volume (Mmcf)

         570

         --

           --

         --

 

Ceiling

 $   12.80

         --

           --

         --

 

Floor

 $     5.00

         --

           --

         --

 

 

 

 

 

 

Collars

Volume (Mmcf)

 

900

900

300

 

Ceiling

 

 $     7.75

 $     7.75

 $     7.75

 

Floor

 

 $     5.50

 $     5.50

 $     5.50

 

 

 

 

 

 

Floors

Volume (Mmcf)

      1,260

      1,470

      1,470

         690

 

Put Price

 $     6.10

 $     5.00

 $     5.00

 $     5.00

 

 

 

 

 

 

Crude Oil

 

 

 

 

 

 

 

 

 

 

Swaps

Volume (Mbo)

           60

        --

           --

        --