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

FOR IMMEDIATE RELEASE

Callon Petroleum Company Reports Fourth Quarter,

Year-end Results for 2002 and Revised Guidance for 2003

Natchez, MS (March 20, 2003)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported the results of its operations for the three-month period and year ended December 31, 2002.

For the three-month period ended December 31, 2002 the company reported a net loss of $0.04 per diluted share compared to a net loss of $0.63 per diluted share for the same period of 2001.

Operating results for the three-month period ended December 31, 2002 include oil and gas sales of $19.1 million from average production of 45.5 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $10.4 million from average daily production of 41.2 MMcfe/d during the same period of 2001.

For the year ended December 31, 2002, the company reported a net loss of $1.7 million, or $0.22 per diluted share. At year-end 2001, the company reported net income of $1.8 million, or $0.04 per diluted share.

Operating results for the year ended December 31, 2002 include oil and gas sales of $61.2 million from average production of 42.7 MMcfe/d. This corresponds to sales of $60.0 million from average daily production of 41.7 MMcfe/d during 2001.

At December 31, 2002, the company’s independent petroleum engineers estimated the present value of the company’s proved reserves, excluding income taxes, using constant prices in effect as of year-end 2002 and discounted at 10%, to be $624 million. Prices used in determining this present value averaged $4.80 per thousand cubic feet of natural gas and $34.22 per barrel of oil. Proved reserves at December 31, 2002 were estimated to be 236 billion cubic feet of natural gas equivalent (Bcfe) and included 92 billion cubic feet of natural gas and 24 million barrels of crude oil.

The company also issued revised guidance for 2003. The revised guidance reflects a reduction in estimated production volumes, primarily in the second half of the year. The lower production estimates for the second half of 2003 are attributable to the company’s revised start-up date for production at the Medusa Field.

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.

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Consolidated Statements of Operations:

(In thousands, except per share amounts)

	Three Months Ended		Twelve Months Ended
	December 31,		December 31,
	2002	2001	2002	2001
Revenues:
Oil and gas sales	$19,050	$10,363	$61,171	$60,010
Interest and other	159	150	1,004	1,742
Gain on sale of pipeline	--	--	2,454	--
Gain on sale of Enron derivatives	--	--	2,479	--
Total revenues	19,209	10,513	67,108	61,752
Costs and expenses:
Lease operating expenses	2,829	2,289	11,030	11,252
Depreciation, depletion and amortization	8,256	6,308	27,096	21,081
General and administrative	1,197	1,090	4,705	4,635
Writedown of Enron derivatives	--	9,186	--	9,186
Loss (income) on mark-to-market
commodity derivative contracts	(80)	--	708	--
Interest expense	7,404	4,063	26,140	12,805
Total costs and expenses	19,606	22,936	69,679	58,959
Income (loss) from operations	(397)	(12,423)	(2,571)	2,793
Income tax expense (benefit)	(139)	(4,349)	(900)	977
Net income (loss)	(258)	(8,074)	(1,671)	1,816
Preferred stock dividends	319	319	1,277	1,277
Net income (loss) available to common shares	$ (577)	$(8,393)	$(2,948)	$ 539
Net income (loss) per common share:
Basic	$ (0.04)	$ (0.63)	$ (0.22)	$ 0.04
Diluted	$ (0.04)	$ (0.63)	$ (0.22)	$ 0.04
Shares used in computing net income (loss)
per common share: