For further information contact

Rodger W. Smith   1-800-451-1294

 

FOR IMMEDIATE RELEASE

 

Callon Petroleum Company Issues Guidance For First Quarter, Full-Year 2006

 

Natchez, MS (March 14, 2006)—Callon Petroleum Company (NYSE: CPE) is issuing guidance for the first quarter and full-year 2006.   The guidance, found in the table below, is expressed in ranges for the detailed components.

 

 

First Quarter and Full-Year 2006

Guidance Estimates

(In thousands, except per production unit amounts)

 

 

 

Guidance for

 1st Quarter 2006

Guidance for

Full-Year 2006

Estimated production volumes:

 

 

   Natural gas (Bcf)

1.8 – 1.9

15.0 – 16.0

   Crude oil (Mbo)

490 - 520

1,735 - 1,880

   MMcfe/d

53 - 56

70 - 75

 

 

 

Lease operating expenses:

 

 

 

 

 

   Cash

$5,400 - $6,000

$28,700 - $31,700

   Non-cash

00000-0000000

      __0000 --00000

   Total

$5,400 - $6,000

$28,700 - $31,700

 

 

 

General and administrative expenses:

 

 

 

 

 

   Cash

$1,700  - $1,900

$ 7,200  - $ 7,900

   Non-cash

150  -      200

 1,500  -    1,650

   Total

$1,850  - $2,100

$ 8,700  - $ 9,550

 

 

 

Interest expense:

 

 

 

 

 

   Cash

$3,475  - $3,850

$13,800  - $15,200

   Non-cash

500  -      550

2,000  -     2,300

   Total

$3,975  - $4,400

$15,800  - $17,500

 

 

 

Medusa Spar LLC, net of tax

 

$525 - $550

$1,750  -   $1,970

 

 

 

DD & A – Oil and gas properties

$12,300 - $13,000

$65,000  - $70,000

 

 

 

Accretion expense

$950 - $1,050

$3,800  -  $4,200

 

 

 

Amortization of premiums on derivative contracts

$85 - $95

$140 - $160

 

 

 

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 2006.

 

 

 

For the Quarter Ended

 

 

3/31/06

6/30/06

9/30/06

12/31/06

Natural Gas

 

 

 

 

 

 

 

 

 

 

Collars

Volume (Mmcf)

       900

        --

         --

        --

 

Ceiling

  $15.70

        --

         --

        --

 

Floor

  $  9.67

        --

         --

        --

 

 

 

 

 

 

Collars

Volume (Mmcf)

        --

        300

         300

        --

 

Ceiling

        --

   $10.40

    $10.30

        --

 

Floor

        --

   $  8.00

    $  8.00

        --

 

 

 

 

 

 

Collars

Volume (Mmcf)

        --

     1,800

      1,800

     1,800

 

Ceiling

        --

    $ 9.30

    $  9.30

   $  9.30

 

Floor

        --

    $ 8.00

    $  8.00

   $  8.00

 

 

 

 

 

 

Crude Oil

 

 

 

 

 

 

 

 

 

 

Swaps

Volume (Mbo)

         45

           45

         --

        --

 

Strike Price

   $55.00

    $55.00

         --

        --

 

 

 

 

 

 

Collars

Volume (Mbo)

          90

           90

            90

          90

 

Ceiling

   $77.10

    $77.10

    $77.10

    $77.10

 

Floor

   $60.00

    $60.00

    $60.00

    $60.00

 

 

 

 

 

 

Collars

Volume (Mbo)

        --

          90

           90

           90

 

Ceiling

        --

   $81.75

    $81.75

    $81.75

 

Floor