For Immediate Release: Tuesday, May 09, 2000

Callon Petroleum Company Reports First Quarter Results

Natchez, MS (May 9, 2000)-Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported the results of its operations for the quarter ending March 31, 2000.

For the first quarter of 2000 the company reported net income, before preferred stock dividends, of $1,164,000. After preferred dividends, the company reported net income of $0.05 per diluted share. This compares to the 1999 first quarter net income, before preferred stock dividends, of $472,000 and, after preferred dividends, a $0.04 loss per share on a diluted basis.

Operating results for the three-month period ended March 31, 2000 include oil and gas sales of $9.5 million from average production of 38.2 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $8.0 million from average daily production of 43.4 MMcfe/d during the same period of 1999. The average price per thousand cubic feet of natural gas increased by 22 percent to $2.52 compared to $2.06 during the same period a year earlier, while the average price per barrel of oil increased by 130 percent to $26.42 compared to $11.49 during the first quarter of 1999.

Callon Petroleum Company is engaged in the acquisition, development, exploration and operation of oil and gas properties primarily in the Gulf Coast region.

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.



Callon Petroleum Company
Summary Revenues and Net Income
(In thousands, except per share amounts)
						


   			          	        		     	  
                                                        Three Months Ended	         		   	    				
                                                            March 31, 
                                                 2000                      1999
                                                 ____                      ____

Revenues                                      $10,118                  $  8,374     	
		        	                         	           	      
	    
Net income                                    $ 1,164                  $    472           
	

Preferred stock dividends                     $   553                  $    831     
			              	                     		          
		                  		                
Net income (loss) available to common shares  $   611                  $   (359)		       					          	
	         	 	                               
Net income (loss) per  common share:
   Basic                                      $  0.05                  $  (0.04)         
		
   Diluted                                    $  0.05                  $  (0.04)         
		                        	        	         		 
		                    		   
Shares used in computing net income (loss) per common share:
   Basic                                       12,156                     8,477        
   Diluted                                     12,354                     8,477        			
		 	        	   	

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For further information contact:
Terry Trovato
P.O. Box 1287
Natchez, MS  39121

(601) 442-1601
terryt@callon.com