For further information contact
John S. Weatherly, CFO 1-800-451-1294
FOR IMMEDIATE
RELEASE
Natchez,
MS (March 21, 2003)--Callon Petroleum Company ( NYSE: CPE / CPE.PrA) today announced
it has hedged an additional 1.2 billion cubic feet (Bcf) of its natural gas
production during the six-month period from May 2003 through October 2003. The hedges were implemented through derivative
transactions in the form of no-cost collars.
The new hedges cover 200 million cubic feet (MMcf) per month for May 2003 through October 2003, providing for a floor price of $5.00 per thousand cubic feet (Mcf) and a ceiling price of $5.80 per Mcf. Previous hedging transactions by the company cover 4 Bcf of its natural gas production for the 10-month period January through October 2003.
Based upon the company’s natural gas production rates for the first quarter of 2003, existing hedges represent 45% of natural gas production for the 10-month period January 2003 through October 2003.
The company’s natural gas hedges, by calendar quarter, consist of:
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Previous |
New |
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|
|
|
|
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|
Quarter Ended |
Volume
Hedged
(MMcf) |
Average
Floor
Price (Mcf) |
Average
Ceiling
Price (Mcf) |
Volume Hedged (MMcf) |
Floor |
Ceiling |
|
3/31/03 |
1,700 |
$3.68 |
$4.77 |
-- |
-- |
-- |
|
6/30/03 |
1,300 |
$3.55 |
$4.73 |
400 |
$5.00 |
$5.80 |
|
9/30/03 |
750 |
$3.50 |
$4.76 |
600 |
$5.00 |
$5.80 |
|
12/31/03 |
250 |
$3.50 |
$4.76 |
200 |
$5.00 |
$5.80 |
|
|
4,000 |
|
|
1,200 |
|
|
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,
including statements regarding the company’s ability to fund its future
obligations, 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.
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