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John Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company

Declares Preferred Stock Dividend

Natchez, MS (March 24, 2003) — Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today that its Board of Directors authorized quarterly dividends to be paid April 15, 2003 to shareholders of record on March 31, 2003 of its $2.125 Convertible Exchangeable Preferred Stock, Series A.

The dividend will be $0.53125 per share.

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.

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