Natchez, MS ( May 3, 2000)--Callon Petroleum Company ( NYSE: CPE/CPE.PrA) reported today that its South Marsh Island Block 261 #4 discovery well encountered 165 feet of net pay (true vertical thickness) in a total of four pay zones. The well will be initially completed and tested in the bottom sand.
This represents the company's third discovery on the South Marsh Island 261 block. At year-end 1999, only the #1 well was included in Callon's estimates of proved reserves. The company owns a 100 percent working interest in the three wells and anticipates placing all three on production through facilities on an adjacent block during the second quarter of 2000.
Although Callon has identified additional prospects on South Marsh Island Block 261, it has temporarily suspended its drilling program there to evaluate production performance of the three discovery wells, determine production capacities of the existing field infrastructure and consider alternatives for increasing production capabilities.
Callon also noted its discovery well at East Cameron Block 275, drilled in December 1999, was placed on production in early April through facilities on an adjacent block. The well currently is producing at a rate of approximately 11 million cubic feet of natural gas and 150 barrels of oil per day.
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