Natchez, MS (April 28, 2000)-Callon Petroleum Company ( NYSE: CPE / CPE.PrA) announced today that a fourth well being drilled to test the Medusa discovery on Mississippi Canyon Blocks 538/582 encountered three reservoirs totaling over 250 feet (true vertical thickness) of net oil pay.
This final well in an extended delineation program at the Medusa Prospect was drilled to a total depth of 14,400 feet and penetrated three separate reservoirs. Two of the reservoirs had not been previously encountered, and both of them met or exceeded pre-drill expectations. This should lead to an upward revision of the company's current reserve estimates from this discovery.
Mississippi Canyon Blocks 538/582 are located in approximately 2,100 feet of water. Callon owns a 15 percent working interest. Murphy Oil Corporation (NYSE: MUR) is the operator and owns 60 percent; British-Borneo Petroleum, Inc. owns the remaining 25 percent.
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.
For further information contact: Terry Trovato P.O. Box 1287 Natchez, MS 39121 (601) 442-1601terryt@callon.com